Montana Nonprofit Association

promoting a strong nonprofit sector in MONTANA

Nonprofit Management Liability (NML) Insurance

MNA Member Benefit 

MNA members have access to enhanced Nonprofit Management Liability (NML) Insurance (formerly called Directors and Officers Insurance) from Monitor Liability Managers, LLC, and the professional agents at Payne Financial Services. MNA endorses Monitor Liability Managers, LLC as its preferred provider of Nonprofit Management Liability Insurance.

 

Monitor Liability Logo 

Program Description 

MNA endorses Monitor Liability Managers, Inc. as its preferred provider of Nonprofit Management Liability Insurance. Protecting your organization from management and employment practices liability through insurance is important for today's nonprofits.

Can your organization afford to pay settlement and defense costs of $100,000? $700,000? How about $2.8 million? These are all recent settlements in lawsuits involving nonprofit organizations. Think it can’t happen to you? Think again.

Nonprofits, large and small, are being sued at an increasing rate and the recent scandals at charities like The Second Mile and the Susan G. Komen Foundation are a reminder of just how fast things can go wrong.

If you think you don’t need D&O Insurance, you’re not alone. However, nonprofits are becoming a more frequent target of lawsuits. Costly attorneys’ fees and settlements, a drop in donations, negative publicity and loss of your nonprofit status are just a few of the consequences your organization can face if you don’t have the right coverage in place when a lawsuit develops.

Montana’s Immunity Law (MCA 27-1-732) is often cited as a rationale for not carrying D&O Insurance, but it does not protect your organization from legal action or from incurring expenses related to legal defense. Learn more by visiting our Director’s and Officers Insurance Frequently Asked Questions page.

Comprehensive Program  

MNA's Comprehensive NML Insurance provides some of the broadest coverage available in the market and includes coverage for personal injury, defense costs outside the policy limits, third party liability and more. Optional coverage is available for employment practices liability and fiduciary liability. Coverage is available for most nonprofit organizations. Premiums will vary depending on total assets, nature of operations and number of employees. A few of the many highlights of the program include:

  • Preferential annual premium pricing for MNA members starting at $650 and $1 million worth of coverage
  • Multiple deductible options of $500, $1,000 and $2,500
  • Deductible applies only to defense costs
  • Deductible waived if no judgment is brought against your organization
  • Separate or combined limits of liability
  • Full prior acts coverage
  • Free, unlimited access to a risk management website and toll-free Employment Practices Liability Loss Prevention Helpline
  • Defense costs are paid outside policy limit of liability
  • Professional staff of in-house attorneys to handle claims
  • Simple application and quotation process

Small Organization Program  

MNA's new Small Organization NML Insurance program is designed for organizations that have not had D&O coverage before, have 0 to 10 employees, and assets of less than $2.5 million. This program also has some restrictions with regards to the nature of the business carried out by the nonprofit. For full details, see "Getting Started" and contact Jackie Nelson at PayneWest in Helena (see below).

A few of the many highlights of the program include:

  • Preferential annual premium pricing for MNA members starting at $375 and $250,000 worth of coverage
  • D&O and EPL limits are combined
  • Defense costs are included in the limit of liability
  • Deductible applies to each claim
  • Free, unlimited access to a risk management website and toll-free Employment Practices Liability Loss Prevention Helpline
  • Professional staff of in-house attorneys for claims, and
  • Simple application and quotation process

Eligibility 

To participate in the MNA enhanced D&O program, your organization must be a 501(c)(3) and a member of MNA.

PayneWest-Insurance 

Getting Started 

The MNA & NML Program is administered in-state by brokers at PayneWest. To obtain a quote, contact Jackie Nelson or download a questionnaire form, complete and fax to Jackie at PayneWest, (406) 532-5952. In most instances, you will receive a quote within 48 hours of your request.  

Questions? 

MNA employees are not able to provide quotes on insurance products. To obtain a quote for your organization, please contact Jackie Nelson at PayneWest in the Helena office. She is available to answer any questions about the MNA Nonprofit NML Program. Jackie can also be reached by phone at (406) 457-5173.

Helpful Resources 

Monitor Liability Managers, LLC is a member company of W. R. Berkley Corporation operating nationally as an underwriting management company specializing in executive and professional liability insurance. Monitor issues policies on behalf of several W. R. Berkley Corporation member companies. All are rated A+ (Superior) by A.M. Best Company 

For general information about any of MNA's programs, contact us by email or call (406) 449-3717.