Non Profits & Insurance

I am on the Board of a non-profit. We have an event this Saturday, which is part of a much larger event.  The treasurer of the board sent an email to all board members with a quote for an insurance policy. The treasurer remarked he needed a unanimous vote – yeah or nay. Another board member and I voted  yes. The next two board members voted no.

I understand the gut reaction of the other two members. The board doesn’t have a lot of money. But I think they are being penny wise and pound foolish.

After receiving the board members responses, the treasurer followed up by explaining that he checked and confirmed that his renter’s policy would provide liability protection for him individually.

When I read that this morning, I wasn’t happy. I called my insurer this morning & confirmed my homeowner’s policy would cover me in my individual capacity. However if the board is sued as an entity, no coverage.

You may think – what’s the big deal? It’s basically risk management. This board is hosting activities on Saturday. And we are specifically having events for children. If any child (or anyone else) is injured by our area, that individual (or individual’s guardian) may sue the board.

Yes, unfortunately, America is an extremely litigous nation. I rather be safe than sorry. But since other board members prefer to be penny wise and pound foolish (& let me say I spoke with a very experienced attorney this afternoon about this matter), I’ve done the best I can to protect myself and will do my best to ensure our area is as safe as possible.


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