The communities that MHJ serves are made up of so many service-minded people that give so much of their time to improve the lives of children and adults throughout the region. Many of our customers serve on boards of directors for organizations such as UCAN, Three Rivers Community College, Boys and Girls Club of Poplar Bluff, or maybe they serve as an officer for their church, The Rotary Club, or a local booster club. Without people who are willing to serve in these roles, no service or charitable organization could function or exist. There are many other businesses that are governed by boards of directors, or that have a corporate structure that includes officers of the company.
But there is a key consideration everyone should think about before accepting a position as an officer or director of an organization or business…Does that organization have a Directors and Officers Liability policy in place? Because if the answer is “NO” and you decide to go ahead and serve, your personal assets could be at risk. If a lawsuit occurs alleging any wrong-doing on the part of that board or your company’s officers, you might be on your own to pay your own legal fees in order to defend yourself. Even if it’s just a small homeowners association, there is still a risk of upsetting someone or making a mistake that causes someone to seek recovery for alleged damages.
Most of our charitable and service organizations have Directors and Officers insurance, but there are many small businesses that should have this coverage, but don’t. There are also many other types of small non-profit organizations that haven’t considered this type of policy. Suits can arise from customers, vendors, volunteers, employees and even competitors, and without this insurance, each director or officer could be left on their own, risking their own savings or other assets.
If you aren’t sure whether your organization or business needs it, take a few minutes to talk with your agent about it. If you are considering serving on a non-profit board, discuss it with the other members first to make sure there is adequate coverage.