Do other organizations have professional liability coverage?
A primary consideration is that we serve in an advisory role to our DAF holders; they often look to us as experts, and the guidance we provide carries perceived authority. Because of that, we’re trying to assess whether this creates exposure that warrants this type of coverage.
Thanks in advance for any input you can provide!
Answers
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Hi Meghan,
Great question! This is something we’ve seen come up from time to time, especially as organizations expand their advisory role with donor-advised funds.
While we’re not able to provide guidance on specific insurance decisions, we can share a bit of context from what we’ve observed across foundations:
- Many organizations evaluate professional liability (errors & omissions) coverage when their role includes advisory or recommendation-based interactions with fundholders
- The level of coverage (or whether it’s pursued at all) often depends on how formalized that advisory role is. For example, whether guidance is framed as educational vs. directive
- Some foundations also revisit their policies, disclaimers, and documentation practices alongside insurance considerations to help clarify the nature of their role
This is definitely an area where peer insight is especially valuable. I'm curious to hear how others in the community are approaching this and what factors influenced your decision.
Appreciate you raising this!
Best,
Mark Bejcek
Client Success Consultant
Foundant Technologies.1
