Helping others with no thought of making a lot of money is a noble pursuit, and many people might consider it, but few follow through. Sometimes, however, the noblest of ideals get muddied in the nuts and bolts of fundraising and political initiatives. At times, people may even question the motives of a non-governmental agency and allege it has done something wrong. That’s why agencies like this need a good package of liability insurance policies, including specific plans like Directors and Officers for non profit companies.
Key Exposures to Consider
Board members for a non-profit should collaborate with an experienced insurance firm to identify particular areas of liability weakness and try to mitigate them. It could be compared to dressing well in cold weather. One wouldn’t go out without a jacket, hat, and gloves in the snow. Likewise, for the people who run a company or an agency, conducting business with proper liability protection helps them minimize potential losses. Policies such as Directors and Officers for non profit companies will help protect board members from loss of personal assets during litigation. They may want to consider the following areas of exposure:
- Civil Rights issues
- Education reform
- Medical Research
Don‘t Be a Target
The board of directors is ultimately responsible for the actions of a company. If someone alleges they have not taken appropriate action, a lawsuit could ensue. For a non-profit, this is especially frustrating, since its staff members are trying to perform a good deed for society. It’s another reason that executives should protect their assets and bank accounts with Director and Officers for non profit companies. A good liability insurance plan helps secure everyone’s interests so business can continue as normal.