During the last few weeks the newspapers have had various articles about the acts of members of boards of trustees and directors of organizations. The articles have not specifically addressed insurance coverage, but one conclusion is mandatory. No one should agree to serve on a board unless she is sure the board has a Directors and Officers (D&O) policy with adequate limits of liability for all directors’ acts while serving as members of the board.
The D&O policy may provide coverage for those who are directors and officers of any board, whether huge or small, non-profit associations and charities. The policy provides coverage including indemnity and defense of claims against individual directors and officers, and reimbursement for the organization that is obligated to indemnify the directors, and for the organization itself.
