Texas Associates Blog

Daily the Team at Texas Associates takes care of requets from clients, solves problems, and acts as an advocate for them as they manage the risk associated with their business and family.  It is what we do, and the way in which we do it differenciates us from other agents and brokers in our community. 

However, embedded in our corporate culture is a desire to serve others as well.  Whether it is at our kid’s school, in our community, Rotary, little league, or church each member of our team is challenged with finding something they are passionate about, and then get involved at some level.  

In today’s litigious society, if you choose to be involved in non-profit or charitable causes, take a minute to access the risk that you may have personally or corporately.   Our firm provides Directors & Officers Insurance to non-profit organizations, and we challenge our clients to ask the organizations they serve whether insurance is in place to protect their interest.  At a minimum consider the following when being ask to serve on a board of directors:

• Prior to joining ask for a certificate of insurance showing the type and limits of insurance in place for the organization.
• Determine a minimum limit of liability you would like for that organization to maintain that would adequately protect your interest.  Many set $1,000,000 as a minimum limit for D&O Insurance.
• Ask the organization if they have had any D&O claims in the past and if those claims were covered by insurance.
• Consult with your insurance professional to determine if your personal umbrella policy has protection for outside directorship.
• If you are serving at the request of your business, check your corporate D&O policy to see if outside directorship coverage is provided.

In the past, none of the above questions needed to be asked, and franklky were probably seen as secondary to helping a worthy cause.  The reality is, many non-profit organizations have had to cut back their budgets, which in some cases has meant limiting insurance.  Serving others is an obligation all of us have to our community.  Making sure we are adequately protected for that service is an individual responsibility.