Here’s a fun fact that you may or may not know about nonprofit boards – board members have fiduciary responsibility, which means if something goes down, their personal finances could be named in a lawsuit.
If you are on a board or thinking about joining one, it’s important to know whether your organization is protecting you. Enter Directors’ & Officers’ Insurance! Does your organization carry D&O, or do they have another risk management solution in place?
Like this handy article says, most nonprofits will never get sued and yet “Every nonprofit must work diligently to recruit and retain suitable board leaders. One strategy is to address the potential for personal liability by taking steps that substantially reduce the likelihood that a board member’s personal assets will be exposed to loss.”
I just paid our annual bill today. In our case, it’s $1,200 per year and worth every penny.