Miami Directors And Officers Insurance Protects Your Good Works

They say that no good deed goes unpunished, and there are, unfortunately, many former volunteers on non-profit boards of directors who can testify to the truth of the old adage. Theyre men and women who unselfishly gave their time to help guide a non-profit agencys business decision, only to find themselves being held liable for actions or omissions committed by the board or by the organization. If you serve on the board of directors for a non-profit organization in Miami, directors and officers insurance can help protect you from liability arising from your service on that board.

What Is Directors and Officers Insurance?

Directors and officers insurance is a type of insurance that provides insurance protection against breach of duty claims made against the directors and officers of a for-profit or nonprofit corporation. These claims may arise from actions taken by the board or by the organization, as well as from actions that the board does not take. In other words, if you serve on the board of a non-profit organization in Miami, directors and officers insurance may protect you from financial liability if an employee, volunteer or other entity that has used your organizations services brings suit against the organization.

What Miami Directors and Officers Insurance Covers

There is no such thing as a standard directors and officers insurance policy. Each policy is designed specifically to cover issues that may arise in the performance of your duty as an officer or member of the board of directors. Some examples of claims that may be covered by a D&O insurance policy include employment-related issues, such as discrimination, harassment or wrongful termination; mismanagement of assets; failure to provide services as agreed and other lawsuits that may be filed against the non-profit and include members of the board of directors.

What Directors and Officers Insurance Does Not Cover

In general, directors and officers insurance will not cover lawsuits against the non-profit for bodily injury or property damage. The non-profit organization should carry sufficient auto insurance, general liability and workers compensation insurance to cover any claims against the company arising from bodily injury or property damage.

Other Things to Know About Directors and Officers Insurance

Miami non-profit board members should also be aware of the unique qualities of directors and officers insurance. In general, directors and officers insurance is claims-made insurance it pays out for lawsuits filed during the policy period, even though the incident the wrongful act that triggers the lawsuit may have occurred years earlier.

In other words, if your organization carries officers and directors insurance currently, and a former employee files suit for an incident that happened in 2005, your company is covered under a claims-made insurance policy even if it did not carry directors and officers insurance in 2005.

Many states have a volunteer immunity statute that protects volunteers from liability for wrongful acts in the course of their volunteer work. Floridas volunteer immunity statute only protects volunteers from liability for bodily injuries and property damage that happened in the course of their service. If you volunteer on a board of directors for an organization in Miami, directors and officers insurance is a must to protect you from financial liability.