Don’t serve on any non-profit Board unless it has Directors and 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 Disabilities Act (ADA).
Other actions against a non-profit Board can come from vendors, recipients of the non-profit’s services, fellow Board members, and 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? Without D&O Insurance, the non-profit will have to pay the cost of defense and the entire amount of the judgment, often resulting in dire financial consequences.
The Dougherty Company places Directors and Officers Liability Insurance for many non-profits in Southern California and would welcome the opportunity to provide you with a proposal. Please contact us at info@doughertyins.com.