Being asked to serve as a board member for any Non-Profit Organization may seem like an honor and a privilege; however, there is more to your board member role than assisting in making executive decisions and facilitating organizational success and growth. One essential role BEFORE agreeing to serve as a board member is to research whether that Non-Profit has Directors and Officers (D&O) Insurance. If it doesn’t you may want to shift your sights as to avoid any legal challenges you could face without insurance protection. Is your Non-Profit Organization protected with Directors and Officers insurance?
Directors and Officers (D&O) Insurance
D&O insurance is protection designed to protect the directors and officers, or other executives, from claims initiated by former employees, current employees, members, or anybody else alleging negligence or wrongful acts during the scope of business as a board member. Despite being a Non-Profit Organization, there are still assets to protect within the organization; therefore, most executives will require D&O Insurance to adequately protect their decisions, actions, assets, and reputation should claims be brought forward.
Common Scenarios That Could Insight Legal Action for Directors and Officers at a Non-Profit
- Violation of responsibility that results in the company’s financial loss
- Misrepresentation/Mishandling of company funds
- Infringement upon competitors’ clients/Stealing data
- Failing to comply with workplace laws, regulations, and standards
Twin City for All Your Business Needs
Twin City Insurance is a North Carolina based independent insurance agency who understands all your business needs and can provide variable solutions, including D&O, in an effort to adequately protect your small business within a budget affordable to you. Ranging from public, non-profit or private businesses, we can assess the multitude of risks that are inherent to your specific business and from there, design a custom insurance package policy best suited for your business needs TODAY.
Call us at 828-464-2643 to discuss the protection that your company executives need and deserve.