167: A Lawsuit Magnet | Do Nonprofits Really Need Directors and Officers Insurance? With Cody Wiswasser

167: A Lawsuit Magnet | Do Nonprofits Really Need Directors and Officers Insurance? With Cody Wiswasser

Author: Jess Birken, MNM, JD June 25, 2026 Duration: 14:53

You're sitting on a nonprofit board. You haven't done anything wrong. Could someone really sue you personally over it? The unfortunate answer is YES, and the costs can pile up fast.

I'm joined by Cody Wiswasser, an insurance professional at Community Partners Insurance Group, to tackle a question from a small animal rescue trying to decide whether directors and officers insurance is actually worth the cost. The short answer is yes, but Cody walks me through why that is, and what most nonprofit boards don't realize about their exposure.

Real Listener Question:

"We recently learned about directors and officers insurance but I'm not sure if it's really necessary. I'm worried the cost will be prohibitive for her. I don't want some litigious person to come after me for something stupid, but we work in a small community where everyone knows everyone. Is this really worth it?"

Cody and I break down what D&O insurance actually covers, why most claims aren't what you'd expect, and why every nonprofit needs this coverage no matter how small.

What You'll Learn:

  • The two insurance policies every nonprofit needs at a minimum
  • Why most D&O claims come from interpersonal disputes
  • What a "prominent person lawsuit" is and why it matters for wealthier board members
  • Why even frivolous lawsuits can cost $10,000+ to make them go away
  • The difference between A-side, B-side, and C-side D&O coverage
  • Why talking to an insurance broker should happen when you start, not years later

Bottom line: No one is going to wave their fairy dust over your nonprofit just because you're doing good work. Plan for risk like you mean it and protect your board before something goes wrong.

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Ever find yourself wishing for a direct line to seasoned nonprofit leaders, a chance to unpack the real challenges that don’t make it into the glossy annual reports? Charity Therapy is that conversation. With host Jess Birken, who brings her background as a lawyer and a Master of Nonprofit Management to the table, each session feels like pulling up a chair with a trusted advisor. The discussions move beyond theory, tackling the granular details of operations that leaders actually face-whether it’s navigating a tricky IRS compliance question, rebuilding a fundraising strategy from the ground up, or managing the complex interpersonal dynamics that define any mission-driven team. This podcast digs into the operational heart of the sector, offering pragmatic insights you can apply directly to your own work. It’s a resource built on the understanding that running a nonprofit is a continuous practice of problem-solving, and Jess guides these explorations with clarity and a deep respect for the work. Tune in for honest dialogue that treats the daily grind of management as the serious and nuanced craft that it is.
Author: Language: English Episodes: 50

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