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Liability For Board Members and Directors
Serving on a board can expose you to a number of potential lawsuits, including alleged acts of negligence, misjudgment or financial mismanagement. Being found guilty of any act of misconduct puts you at risk of losing your personal assets. A common fear of personal liability keeps many people from serving on a board of directors. People generally establish corporations so they can undertake activities without the threat of a personal liability lawsuit. In most cases, directors and officers are immune from liability for corporate acts, and as a general rule, courts will allow corporate creditors to seize only corporate owned property. However, the courts will not allow creditors to “pierce the veil” and seize personal assets when a corporation has not followed the formalities required of a corporation. This most often occurs when the corporation takes actions without the board of directors having granted formal authority, or corporate assets have not been segregated from the assets of directors.
Nature of Business
(who we can help)
We can help insurance producers (agents and brokers) that are looking to write more business for their clients, including:
- Inside Directors
- Outside Directors
- Chair of the Board
- Advisory Boards
- Governing Boards
- Managing or Executive Boards
- Fundraising Boards
- And More!
- And More!
Coverage Options
We can provide customized coverage and the ability to put your client’s coverage under one, simple policy. Coverages for Board Member Liability Insurance can include:
- Commercial General Liability
- Personal Liability
- Professional Liability (E&O)
- Directors and Officers (D&O)
- Employment Practices Liability Insurance (EPLI)
- Communicable Disease Liability Coverage
- Alleged Assault and Battery Liability
- Alleged Sexual Abuse and Molestation Liability
- TRU Umbrella / Excess Liability
- And More
Questions to Consider:
Know the Facts
Did you know many common, frivolous legal claims may qualify as exclusions in your existing policy – for example, claims of sexual harassment or molestation are usually excluded from traditional business insurance policies?