Does your non-profit or charitable organization or volunteer centre have people serving as trustees, directors or officers?
Do you have employees or volunteers working on behalf of your organization or volunteer centre?
If so, your organization’s assets and the personal assets of those individuals may be exposed when any error, omission, misleading statement, neglect or breach of duty, employment practice violation or wrongful act such as discrimination or harassment, is alleged by a third party against a person acting in their capacity as a member or representative of the organization.
In fact, in addition to naming individuals in a statement of claim, your organization or volunteer centre itself may also be named in connection with the allegations.
Volunteer Canada’s members have access to discounted Directors’ and Officers’ Liability Insurance designed to meet the specific needs of the non-profit and charitable sector.
Legal Expense Insurance is automatically included in Directors’ & Officers’ Coverage.
Directors’ and Officers’ Liability Insurance provides coverage for a non-profit or charitable organization or volunteer centre and their trustees, directors and officers who may be exposed to liability through the actions of a person acting in their capacity as a member of the organization. This includes claims arising not only out of the actions of directors, officers, and trustees, but also of employees, volunteers, and committee members. Directors’ and Officers’ Liability Insurance responds when any error, omission, misleading statement, neglect or breach of duty, employment practice violation or wrongful act such as discrimination or harassment, is alleged against any person acting in their capacity as a member or representative of the organization. Directors’ and Officers’ Liability Insurance supplements the organization’s general liability insurance coverage.
Directors’ and Officers’ Liability Insurance provides coverage for claims resulting from board/managerial decisions that have adverse financial consequences. These can include claims for damages related to:
Directors’ and Officers’ Liability Insurance also provides coverage for claims resulting from the actions or inactions of any person (for instance volunteers or employees) acting in their capacity as a member or representative of the organization. These can include claims for damages related to:
The costs of defending claims and the damages awarded can be significant. Volunteer Canada highly recommends that all member organizations consider carrying Directors’ and Officers’ Liability Insurance.
The basic responsibility of directors is to represent the organization’s interests, their members and their constituencies in directing the affairs of the organization, and to do so within the law. In their role as “trustee,” directors have three basic duties:
A volunteer director who fails to fulfil his or her duties as outlined above may be found liable and may be held personally responsible for financially compensating someone for damage or loss arising from their failure to meet a pre-determined legal standard.
Directors and officers may be held personally liable for claims arising from:
Claims may be made by:
Non-profit and charitable organizations and their volunteers serve a vital role in our community. In addition to providing access to the most comprehensive, cost-effective Directors’ and Officers’ Liability Insurance available in the sector, Volunteer Canada is committed to empowering members with risk management tools to protect themselves pro-actively.