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

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. Resources from this Episode Learn more Community Partners Insurance Group at https://communitypartnersins.com Previous Episode: https://birkenlaw.com/charity-therapy-podcast/ct166-strategic-planning-perry-monastero/ Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/05/CT167_Transcript.pdf Connect with Us Jess Birken: https://www.linkedin.com/in/jessbirken/ Cody Wiswasser – reach out at: [email protected] Listen & Engage Listen on Apple Podcasts | Spotify | YouTube | Amazon Music Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review" Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story   Stay Connected Sign up for the Birken Law Email list: https://birkenlaw.com/signup/   Follow us on Facebook, Instagram, Twitter