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What is Directors & Officer Liability Insurance?
Directors and officers liability insurance protects past, present and future directors and officers of  non-profit  organizations  from damages resulting from alleged or actual wrongful acts they may have committed in their positions. The policy provides protection in the event of any actual or alleged error, misstatement, omission, misleading statement, or breach of duty.
What does Directors and Officers liability insurance cover?
Criminal, administrative, civil, and regulatory proceedings based on actual or alleged acts, errors, omissions, misstatements, neglect, or breach of duty committed or allegedly committed by a director or officer are covered with Directors and Officers liability insurance.
Why is Non-Profit Directors & Officers Liability Needed?
1.    To protect the  personal assets of board and committee members
2.    Maine statutory immunity does not apply to the types of claims that arise out of actions as a board or Committee member
3.    The Personal Umbrella carried by a Board Member may  not extend over their actions on the Board or its committees
4.    The bylaws of the organization require that the entity protect and indemnify the board member  in the event of a suit against them.  This obligation is fulfilled by the organization carrying D&O coverage including  Employment Practices Liability.
5.    D&O claims are not covered by the organization’s general liability policy
By volunteering, you’re helping take care of others
If you sit on the Board of Directors of a non-profit organization, you have gone out of your way to help others  Make sure you take care of yourself, too.  Every board member should request an annual review of the organizations bylaws and  directors & officers liability Insurance.  This will be beneficial for current and new members and provide an opportunity to ask questions.
By Richard Crossman, CIC, CRM

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