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.

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 Mileand 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.

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



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

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.


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.


Directors and Officers Liability Insurance (“D&O”) is intended to protect the assets of a nonprofit organization and the individual directors, officers and employees from claim and litigation expenses. All directors, officers and employees have certain management duties and responsibilities they owe to the organization. D&O coverage is designed to address allegations of “wrongful acts” that allege breach of the legal duties of care, obedience and loyalty to the organization. Claims such as failing to protect and manage the financial affairs of the organization or wrongful employment practices may arise under a D&O policy. While not all management liability claims may be covered under a D&O insurance policy, it is one of the best ways to protect the organization from defense expenses, settlements and verdicts against the organization and individuals that serve it.

Your organization's commercial general liability (CGL) policy does not cover "wrongful acts," that may occur as a result of management decisions and activities of the organization. In all likelihood, the CGL coverage is limited to bodily injury and property damage only.

Unfortunately, the answer is Yes. In a recent report by Watson Wyatt Company, 36% of the 726 associations and other nonprofit organizations surveyed had a D&O liability claim in the past ten years - more than double the percentage that had had a claim in the preceding ten years. The greatest increase of claims activity is among smaller organizations. Significantly, the survey indicated that the average defense cost for a D&O claim is $114,000. What would an unexpected and uncovered expense of $114,000 do to your organization, and your individual directors, if you could not indemnify them?

Federal and state laws do not bar all claims against a nonprofit and its employees and volunteers. First, it is important to remember that immunity laws are a defense to a lawsuit. The organization and its employees and volunteers likely will still incur defense expenses in asserting the immunity. The Federal Volunteer Protection Act of 1997 may not shield the organization itself, or staff. Also, it does not preclude claims against a volunteer for allegations of violations of federal civil rights laws (the most common source of claims), "gross negligence," or automobile-related liability. State "immunity" statutes vary, and may protect the nonprofit only if D&O insurance has been purchased. Your organization can be sued for a “wrongful act” causing injury by anyone with any interest in the organization’s activities -- employees, members, constituents, donors, board members, vendors, governmental authorities and others. Without nonprofit D&O coverage, you must pay for your own defense, even if you are proven blameless.

Yes. A representative of Payne Financial Services can be scheduled to make a presentation to your board. Additionally, MNA periodically offers educational sessions on governance, organizational liability and insurance.  The Nonprofit Risk Management Center also has excellent web-based resources for learning more about potential D&O liabilities and risk management.

The D&O program endorsed by MNA and offered through Payne Financial is available only to 501(c)(3) members of the Montana Nonprofit Association. MNA has authorized Payne Financial to be the exclusive broker for this program. Other brokers may be able to offer a nonprofit D&O policy but it may not be identical to MNA’s program. If your broker indicates that he or she has a better product, we recommend that you comparison-shop. You need not be an MNA member to receive a quote through Payne Financial. You do need to be a member to purchase the coverage, however.

While we are confident of the quality of the MNA D&O Program, we encourage everyone to shop wisely and compare policies and prices to ensure that your organization has the best coverage at the best price to meet your needs. There could be many reasons for price variables in policies including different deductibles, different coverage, and fewer or more exclusions to coverage. Insurance carriers also have varying reputations for the quality of policy and claims service. Check with your insurance agent. If your existing policy has the same broad coverage and quality reputation at a lower premium than the MNA program, stay with your carrier and enjoy the savings. To assist, we have an abbreviated quote request form that can be downloaded to receive a quick and free MNA D&O Program quotation.

* 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.