Learning patterns/Keeping nonprofit organization insurance
What problem does this solve?
In some places, it is typical for nonprofit organizations to have insurance. The most common insurance plan covers liability claims and claims against directors and officers. Such a package might be called "liability and D&O".
"Liability" in this case might refer to something like an injury at an event. Suppose that a Wikimedia chapter hosts a Wikipedia event, and in some accident, an attendee falls and has an injury which needs medical treatment. The Wikimedia chapter might be responsible for the injury, and might need to compensate the injured person. In this case, if there is insurance, then the insurance company would manage the claim to the extent of the liability insurance coverage. In that same situation, the injured person might ask for compensation from the directors or officers of the Wikimedia chapter. If there is D&O coverage, then the insurance company might cover any lawsuit that targeted the directors or officers as individuals for their involvement with the chapter.
This sort of insurance should seem routine. In countries including the United States, practically all nonprofit organizations of a certain size get this sort of insurance.
What is the solution?
It is difficult to make a decision about insurance. As of 2016, no Wikimedia chapter has published information on how it made any decision on whether to purchase insurance or how to make a purchase decision.