This morning I found an article from the July/August 2009 issue of Business Law Today, published by the American Bar Association, about directors and officers (D&O) liability insurance for nonprofits. The article provides a comprehensive overview of D&O insurance coverage from the perspective of a lawyer representing a director/officer of a nonprofit corporation. It’s a long article but it provides very specific information on federal immunity for volunteers, how fiduciary duties have expanded over the years and the legal precedents established through recent case-law, possible liability issues a board member may face, as well things to look for in a D&O policy.
I’m a bit of a law nerd and found the article extremely interesting – take a look if you’re a board member at your Club or Association and have questions about what protection your organization provides you as a director or officer. We’ll be posting more about nonprofit benefits and limitations in a future post, so stay tuned!