Why having Directors and Officers Insurance is important for Volunteer Boards

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Why Directors and Officers Insurance is So Important

Many of us sit on both volunteer and for-profit boards. There are liability risks for serving on any board. I would not serve on a board that does not carry this insurance, and here are some reasons why your risk needs to be transferred to an insurance company. I have sat on boards, including the Hayden Idaho Chamber, our local HOA water district board, while Jan has served on the Idaho Drug Free Youth board.

Both Non-Profit and Officer Boards can be sued by donors, employees, the general public, clients, or the government.

The personal assets of the board members are at stake! D&O insurance can help protect the board members home, investments or other personal assets.

Lawsuits can have a devastating impact of a nonprofit and can even put them out of business.

Directors and Officers claims are not covered under General Liability or any other policy form.

The IRS has increased scrutiny of Non Profits. Over 500 private foundations have been audited in the past year.

Directors of Non Profit boards have the same fiduciary duties as corporate board members. Many lawsuits involve a variety of issues related to the daily operations of the board.

For this and many other reasons, if you are a member of a board, you should be sure you are covered. If you have any questions, please give Laura or Toni a call today and they can help you!

Laura Severs- laura@janjinsurance.com 208-762-2122

Toni Norton toni@janjinsurance.com 208-762-2122