Nonprofit Liability Insurance

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Library Directors, Officers, and Trustees
Library Foundations

Nonprofit Liability (NP) Insurance protects the assets of a library or library foundation and its individual directors, officers, and trustees from expenses arising from allegations of wrongful acts.

Why do libraries and library foundations need NP Liability Insurance?

NP Insurance offers protection for individual directors and officers when claims are made against them. It also safeguards the library or foundation against liability for claims brought by employees and/or patrons. This coverage helps to attract and retain qualified board members.

Learn More! COVERAGE BROCHURE  (pdf)

What does a library or library foundation and its directors, officers and trustees have to lose if they don’t have coverage?

Costly litigation and settlement expenses, loss of donations, negative publicity and loss of your nonprofit status are just a few of the consequences your library or foundation could face if you don’t have NP Insurance when a claim occurs.

Nonprofit Liability Insurance includes

  • Directors and Officers Liability (D&O) Insurance
  • Employment Practices Liability (EPL) Insurance
  • Fiduciary Liability Insurance

Coverage Enhancements for TLA Members

  • Enhanced endorsements provide expanded coverage for TLA members
  • Discounted pricing
  • Complimentary risk management services

If your library is legally part of an ISD, municipality, county, university, etc., then why would you library need its own policy?

When the policy is held by the governing authority, the library's limits are shared with other departments which could reduce the coverage available for you and your library.  Additionally, the coverage in the broad organizational policy may not be specific to libraries, and potential gaps in coverage might exist because of volunteer and third-party exposure.

Why is purchasing a policy specifically for your library excellent ‘sleep’ insurance?

  • You have your own dedicated agent to explain the nuances of the coverages your policy provides.
  • You have free risk management services to mitigate any issues that may arise.

Claim scenarios showing the damages that a lawsuit can cause!

Former President Sues for Breach of Contract
A former library board president filed a lawsuit against a library. She claimed she was ousted from her position and wrongly banned from serving on the board in the future. She also alleged the executive board embarked on a smear campaign that affected her ability to perform her full-time job with the local school district and to secure future board positions. The matter ultimately settled for a nominal amount, plus an agreement by the claimant not to run for a position on the board for 10 years. Defense fees and costs exceeded $40,000, and were paid by the insurance company after the library met its deductible.

National Origin Harassment and Retaliation Lawsuit
A large private university library agreed to pay $210,000 to settle a race and national origin harassment and retaliation lawsuit. The lawsuit alleged the library violated federal laws by subjecting an African-born library assistant to a hostile work environment and by retaliating against him after he complained.

According to lawsuit, the library director regularly addressed the assistant, a native of Ghana, with slurs such as “monkey” and “gorilla” and insults such as “go back to your cage” and “do you want a banana?” The director also called the assistant’s accent “gibberish,” and was hostile toward immigrants, particularly Africans.

The lawsuit claimed the library’s human resources personnel took months to investigate the employee’s numerous complaints, and then failed to take appropriate action, even after discovering the director had retaliated against the employee. Without insurance coverage the library would have paid defense fees and legal costs exceeding $100,000.

Third Party ADA Lawsuit

A paraplegic and wheelchair bound patron filed a lawsuit against a municipal library. He alleged that when he visited the library he encountered physical barriers that prevented him from entering and using the library. These barriers included ramps without railings, narrow handicapped parking spaces and inoperable handicapped accessible entrance doors. The case settled for $25,000 with an agreement by the municipal library to remedy the issues. Defense costs totaled $40,000. These costs were paid by the insurance provider after the library met its deductible.

MyHRHelpTM Risk Management Services

From the day the policy premium is paid, policyholders receive complimentary access to:

  • Toll-free helpline calls that provide basic workplace issue consultation
  • MyHRHelpTM website with employment resources
  • Free monthly risk management webinars and an archived webinar library

All services are provided by Gordon Rees Scully Mansukani LLP.

Frost LogoAgent Contact
To request a quote, contact Judy Negus, Frost Insurance Services, at 210-220-6348 or

Monitor Logo

A+ Rated Insurance Provider Monitor Liability Managers

 Monitor, a member company of W. R. Berkley Corporation, delivers executive and professional liability insurance solutions to individuals, businesses, firms and organizations nationally. For more than 20 years, Monitor has provided comprehensive Nonprofit Liability Insurance at competitive prices. 

A + Rated Insurance Carriers

Monitor places coverage with Admiral Insurance Company, Berkley Insurance Company and Carolina Casualty Insurance Company all rated A+ (Superior) by A.M. Best Company. 

Created on Apr 7, 2014 | Last updated January 27, 2016