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Learn more about why nonprofits need
Directors' & Officers' Liability coverage.
Nonprofit D&O Loss Prevention
Manual (Please note this is a large file and will take time to download) - Although directors and officers of nonprofit entities are generally
not subject to the same scrutiny, pressures and legal requirements as their
for-profit counterparts, nonprofit directors and officers still have meaningful
exposure to personal liability. In fact, several surveys have reported that
the frequency of claims against nonprofit directors and officers has doubled
during the past several years.
Also, individuals generally become directors and officers of nonprofit entities
because they are interested in being a part of a service organization, and not
an organization focused on creating profits. These individuals generally are
very surprised to learn than their actions -- or inactions -- may be the basis
for a lawsuit against them, and that a wide and growing range of litigation
risks is now a given for nonprofit directors and officers.
As discussed more fully in this manual, nonprofit directors and officers can
be protected through indemnification, state liability limitation statutes, a
thorough loss prevention program and a comprehensive nonprofit directors and
officers insurance policy.
Learn about the Volunteer Protection
Act and why you still need Directors' & Officers' Liability Insurance.
Who Sues Nonprofits and Nonprofit Boards and Why? -One of the myths associated with nonprofit D&O
exposures is that there are few sources of claims since nonprofits don't have shareholders. Nonprofits serve
large and varied constituencies to which their boards owe specific fiduciary duties similar to duties owed
by corporate boards. These constituencies are potential plaintiffs in legal actions brought against nonprofit
boards.
What Jurors Conclude About Documentation -A recent article
from the Maryland Employment Law Letter provides some interesting
food for thought for nonprofit employers. The article outlines
three unwritten assumptions jurors make about documentation presented
to them during trials.
The Employee Handbook – Learn about
the many good reasons, both legal and non-legal, to publish a handbook.
The Employment Application –
Learn about how an employment application is an information-gathering tool that
will assist you in your hiring decisions and how it should contain language
that will reduce employment-related liability exposures.
Insurability Checklist - The Checklist
consists of lists of questions about association policies, programs or procedures
that could carry legal liability risks. The Checklist can be used by an association
as an organization management self-evaluation document to help understand and
evaluate the potential risks they might face.
Glossary of Risk Management Terms - The Glossary of
Risk Management and Insurance Terms is taken from the book Coverage, Claims & Consequences: An Insurance Handbook
for Nonprofits, published by the Nonprofit Risk Management Center (www.nonprofitrisk.org), a nonprofit serving
other nonprofits through articles, books, online training, workshops, conferences and consulting with a nonprofit's
slant on managing risk. The link to the Glossary is provided with the Center's permission.
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