Volunteering on a Board?
Volunteers are the grass roots of our communities. Giving of your time and talent is a generous gift. Volunteering benefits our recreation facilities, youth sports teams, churches, school/parent councils, to name a few worthwhile groups, and our neighborhoods. With volunteering often comes the opportunity to help direct the management of these organizations by holding a Board position such as president, vice-president, secretary or treasurer. Board positions are an honour but also an obligation. Directors’ & Officers’ Liability Insurance supports your en devours.
Keep in mind that Board members have a duty to exercise due diligence in overseeing the management of the organization that they serve:
-To act reasonably, in good faith, and in the best interest of the organization,
-To place the interest of the organization above your own and
-To act within the scope of applicable by-laws
Be aware that Board members can be held personally liable and that:
-Ignorance is not a defence
-Resignation is not necessarily a defence
The solution? Directors’ & Officers’ Liability Insurance. It is a pool of money for legal liability which protects against:
-Legal and defense costs
-Financial losses for awards and settlements
A Directors’ & Officers’ insurance policy offers liability protection individually (personal assets) and for the Organization (corporate assets). Quite simply: people can make mistakes – and are often personally liable for them. The Board constantly walks a fine line, making tough and complex decisions, with huge impacts, based on the sometimes-limited available information. A Directors’ & Officers’ insurance policy enables the Board to make decisions without the threat of personal liability constantly hanging over them. It enables settlement of these types of claims quickly, relatively discreetly and economically.
Farrell Agencies can help with a competitive quote for either an existing or new Directors’ & Officers’ insurance policy.
Keep volunteering and thank you for making our world a better place.
Farrell Agencies believes in volunteering and encourages all staff to volunteer in the community.