Don’t serve on any non-profit Board unless it has Directors & Officers Liability Insurance (D&O). Like Corporate Boards non-profit Boards can be sued, most often by current and former employees alleging wrongful termination, sexual harassment and violations of American with Disabities Act (ADA).
Other actions against a non-profit Board can come from vendors, recipients of the non-profit’s services, fellow Board members, and from the State Attorney General alleging wrongdoing. Boards have also been sued by the U.S. Internal Revenue Service and the U.S. Department of Labor alleging violations of state and federal laws.
If an action is brought against a non-profit Board, who will defend and indemnify them? With no D&O Insurance the non-profit will have to pay for the cost of defense and pay the entire amount of the judgement often resulting in dire financial consequences.
The Dougherty Company places D&O Insurance for many non-profits in Southern California and would welcome the opportunity to provide you with a proposal. Please contact us at firstname.lastname@example.org.