Who would think public-spirited citizens volunteering their time to serve on a nonprofit board would ever face the business end of a directors and officers lawsuit? According to some of the nation’s major commercial insurance underwriters writing such D&O coverage for nonprofit organizations, there are apparently plenty of reasons to believe so.

The nonprofit realm encompasses a wide variety of organizations with pockets often as deep as their for-profit counterparts. Hospitals, school boards, homeowners associations are among the many groups falling into this arena with plenty to worry about in terms of disgruntled members, patients, customers or other stakeholders, and in some instances, stake-drivers.

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