Are you a director of a charity organization? You might be considering what kind of insurance to get for your nonprofit. Insurance like standard liability, property insurance and any workers’ compensation coverage required should financially cover most of the dangers for your organization. Have you also considered directors’ and officers’ liability insurance?
It is wrong to believe that directors of nonprofit organizations can’t be sued because they’re unpaid. It is smart to make sure that members and officers in your nonprofit have coverage for any possibility of being sued due to malpractice or other claims like sexual harassment or wrongful dismissal. Should such a claim be made and is successful, the nonprofit group could be forced to take the compensation out of its cash reserves if it has neglected to get insurance coverage.
This is why it is probably a great idea to think about purchasing directors’ and officers’ liability as part of your nonprofit insurance. This coverage may provide you financial protection in the occasion of any successful actions against directors and officers who’re members of your organization. For further information, why not speak with one of our agents for a quote?