Not-for-Profit Liability Insurance
We are able to assist clients who would like to protect their personal assets while they are involved with charitable organizations by providing not-for-profit liability insurance coverage.
Did you know that volunteers, committee members, boards of directors and officers can be at risk when they actively participate with a not-for-profit organization? Not-for-profit organizations are bound by legal covenants at both the local and federal level. Anyone who may be actively involved could be held personally liable should legal action ever be taken against the organization. At Noble Insurance, we are able to assist clients who would like to protect their personal assets while involved with charitable organizations by providing not-for-profit liability insurance coverage.
There are several scenarios in which not-for-profit liability insurance may be useful:
The first of these is an event where government funding is lost and a charitable organization must file for bankruptcy. Individuals who are officers or members of the board could be held personally responsible for unpaid wages and any back-taxes owed.
Not-for-profit liability insurance can help to offset or defray these costs.
A second scenario involves the need for legal counsel due to an employment claim. Should an employee file suit claiming wrongful termination, the organization may need legal counsel to assist in sorting out the details of the case. Not-for-profit liability insurance protects individuals and the organization during the course of these proceedings.
Lastly, a donor may feel their monetary giving is misused. The organization may be compelled to hire a defence attorney who can assist in the mediation and closure of a “misuse of funds” claim. Not-for-profit liability insurance can help to offset these costs and protect individuals from being personally liable for the defence costs and any financial outcomes.
If you have questions about not-for-profit liability insurance, please contact us a Noble Insurance today to discuss your options.
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