Personal Liability

Introduction

When working in a leadership role on a nonprofit board, having protection via policies and insurance can help keep the affairs of the organization from effecting individuals. This lessons outlines some of the ways liabilities and risks are managed.

Managing Liabilities and Risks

• Volunteer Protection Act (H.R. 2432)
  • Federal shield protecting volunteers from liability
  • Does not apply to intentional misconduct or gross negligence
• Insurance
  • Helps organizations mitigate risks
  • Directors & Officers (D&O) Insurance
    • Protects the personal assets of corporate leaders and board members from lawsuits alleging mismanagement, breach of fiduciary duty, or wrongful acts. (The Hartford)
    • Neighborhood Associations are provided D&O insurance through D4C
  • Liability Insurance
    • General liability insurance protects against lawsuits and other claims arising from operations
  • Other Types of Insurance
    • Accident insurance
      • Protects volunteers regarding matters of safety
    • Cyber insurance
      • Protects the technological assets of an organization
• Safety Policies
• Potential Board Policies
  • Conflict of Interest (D4C Conflict of Interest Policy)
  • Records Retention
  • Whistleblower
  • Financial
  • Other
• Liability Waivers
  • D4C Liability Waiver Form