Is officers& directors insurance for non-profit corporations necessary?
On One Hand: Board Member Protections.Non-profit directors have several protections, including liability insurance, against responsibility for the actions of the non-profit corporation. The best protection is conscientious performance of your board responsibilities. The federal Volunteer Protection Act and similar state laws generally protect individual board members from being sued and corporate bylaws may indemnify board members against personal responsibility for corporate actions.On the Other: Board Member Risks.Non-profit board members have specific duties, including duties of care, loyalty and obedience. If you neglect or violate one of these duties, you may be found personally liable for damages. When an employee sues the non-profit for discrimination, for example, board members may have individual liability if they have neglected to enact adequate anti-discrimination policies for the corporation.Bottom LinePurchasing directors and officers insurance is a prudent step for most n
