D&O coverage is typically sold in a bundled package with Employment Practices Liability insurance. Limits, which can be shared or segregated, vary by size of the nonprofit, but are usually $1 million, $3 million or $5 million, says Sal Pollaro, managing director for Markel Corp. Limits can reach into the tens of millions of dollars for the larger nonprofits.

Coverage is on a claims-made basis. A departed board member remains covered so long as the nonprofit's D&O coverage stays active.

Deductibles begin at $500, says William R. Henry Jr., executive director of Volunteers Insurance Service Association Inc. The number of people associated with the organization drives the premium.

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