Directors and Officers for Non Profit Companies have the responsibility to ensure their organization is working for the public good and employees are not using their positions for personal gain. Members are legally prohibited from involvement in political lobbying or activism. Leadership must ensure, among other duties, which pertinent records are not to be destroyed and that no retaliation is made against whistleblowers. Board members and officers may be sued for any number of failures to comply with these regulations, and their personal assets are at risk of seizure, making Directors and Officers for Non Profit Companies insurance an essential liability coverage.
Staff Have Less Accountability
Many Non Profit organizations are caught up in the excitement of their mission and assume that because their intentions are to do good and achieve results, they could not be accused of wrongdoing. Non Profits have a minefield of accountability that many for profit companies do not have. Non Profits use more volunteers, whose activities are harder to track because they are not paid a salary, they contribute sporadic hours, and they come and go more frequently than paid employees. Directors may themselves be volunteers.
Sadly, Non Profits are also at greater risk for lawsuits because of the perception that they are well-funded. Directors and Officers for Non Profit Companies provides comprehensive liability insurance allow your organization to stay focused on the mission.