Exposing Your Treasures

When we decide to help out a cause we believe in, we often give of our time, talents and treasures. Whether we are helping out at church or a non-profit, we often do not think of how we might be opening ourselves to liability. Inadvertently, you may be exposing yourself and your assets to risk by not making sure that the church or non-profit you are helping is properly covered. This is not often one of the first questions you ask when offering to help:

“How can I help and please provide me a copy of your insurance coverages?”

Serving on the board of a non-profit may open you to being liable for the decisions of the board. Before agreeing to serve on a board of any company or non-profit, be sure to ask for a copy of the directors & officers policy to make sure you are properly covered. A careful assessment of any organization’s risk management plan would be a valuable contribution as a board member. Some questions to ask:

1.)    What is the organization’s 3-5 year risk management plan?

2.)    When claims or losses have occurred, in what areas did they normally happen?

3.)    What are the biggest areas of risk for the organization?

4.)    How are the management and employees being trained to avoid risks?

5.)    Does the board carry Directors and Officers coverage?

Your well-intentioned desire to help others should not lead to you exposing your treasures to unnecessary loss.

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