Protect Yourself While Supporting a Worthy Cause
Sitting on a non-profit’s board of directors can make you one of the organization’s most valuable assets. Volunteering your time and expertise provides essential insights, guidance, and direction. However, this role also comes with a certain amount of liability. Many board members may not fully understand the risks they assume. Fortunately, with some preparation and strategic measures, you can protect yourself while helping to advance the non-profit’s mission.
1. Understand Your Responsibilities
Understanding your specific responsibilities and how the non-profit operates is crucial. Familiarize yourself with both state and federal laws relevant to non-profits to ensure the organization complies fully. By knowing your duties and the legal landscape, you can better navigate potential pitfalls and uphold the organization’s integrity.
2. Keep Organized Records
In the event of public scrutiny or legal challenges, meticulous recordkeeping becomes invaluable. Ensure that all financial records and other important documents are clear, current, and transparent. Well-maintained records can help you quickly resolve any discrepancies or misunderstandings, demonstrating the organization’s compliance and your due diligence.
3. Determine Your Insurance Needs
Non-profits typically require various insurance policies to protect against different risks. If the organization has employees and volunteers, workers’ compensation insurance is a must. Additionally, general liability, property insurance, and errors and omissions coverage should be considered. As a board member, you should seriously consider Directors and Officers (D&O) liability insurance. This type of insurance specifically protects you and your personal finances if the non-profit faces a lawsuit and its existing coverage falls short.
To learn more tips for Non-Profit board members, check out this article from The Foundation Group.
CAV Insurance Consultation for Non-Profit Board Members
To discuss available insurance options for you and the non-profit, please contact CAV Insurance Agency, serving Wellesley, Dover, and surrounding towns. We’ll take the time to learn about your unique circumstances and recommend insurance products that will safeguard you while you volunteer. Give us a call today at 781-237-4107