Protect Yourself While Giving Back to a Worthy Cause
If you sit on a non-profitâ€™s board of directors, you may be one of the organizationâ€™s most valuable assets. You volunteer your time and knowledge, provide insights, guidance, and direction. While you do this, however, you also assume a certain amount of liability for your actions. Many people on the board donâ€™t properly understand the risk they take on when giving back to a worthy cause. Fortunately, with some preparation and smart handling, you can protect yourself while advancing the non-profit organization.
Understand your responsibilities
You should understand the details of how your non-profit operates, as well as what it is youâ€™re specifically responsible for. Make sure you know the laws, both state and federal, and ensure that the non-profit is following them to the â€˜tâ€™.
Keep organized records
If the worst does happen and your non-profit comes under public scrutiny, you will want to make sure your recordkeeping and finances are clear, up-to-date, and above board. That way, youâ€™ll be able to easily clear up any discrepancies or misunderstandings.
Determine your insurance needs
If the non-profit has employees and volunteers, it will need workers compensation insurance among other insurance policies. Other insurance considerations should include errors and omissions, general liability, and property insurance. As a member of the board of directors, you may want to consider directors and offers liability insurance, which works to specifically protect you and your finances if the non-profit is sued and their insurance doesnâ€™t cover the costs.
Are you thinking of joining a board of directors at a non-profit organization? Here is what you should consider.
To discuss the insurance options that are available for you and the non-profit pleaseÂ contactÂ CAV Insurance Agency, serving Wellesley, Dover, and surrounding towns.