YOU’RE A VOLUNTEER BOARD MEMBER: WHAT ARE YOUR RISKS?

Most business executives and managers are from time to time asked to participate as a volunteer board member of a local or state association non-profit. It’s considered a civic duty and an honor to participate in these boards. But seldom do the board members consider their personal risks by being on these boards. Even though state law in Ohio reduces the degree of responsibility (fiduciary liability) for volunteers of non-profits, there still are statutory risks inherent in these activities. That’s where non-profit Directors & Officers Liability Insurance comes into play. One of the first questions you should ask when approached to serve on a non-profit board is “do you carry D&O insurance, and if so, in what limits? Do you have a contractual responsiblility in your by-laws to reimburse your board members for personal financial loss?"

To help you understand more about this subject and to provide you with some suggestions on how to minimize and control your exposure, please link to an article on this subject at:

http://consolidated-ins.com/images/stories/docs/protection%20for%20nonprofit%20organizations.pdf

It might be helpful to your fellow non-profit board and executive directors to share this article with them and have them audit their procedures and decision making processes. Hopefully this will be an effective way to reducing your exposure to personal loss as a volunteer.