Why Your Directors and Officers Care About Insurance
December 16, 2015
Think about your ministry’s board members and administrators: the work they do is important to your organization, and they are often volunteers with other full-time jobs. Did you know these board members could face personal liability and financial damages as a results of unjust leadership actions?
Sometimes ministry directors find themselves in situations where they have failed to maintain adequate financial records or exceeded the authority granted by the church’s bylaws. Circumstances like these make it important to consider Directors and Officers liability coverage (D&O) to protect your organization’s board members, administrators, trustees, directors, and officers.
What is D&O coverage?
D&O coverage helps protect the personal assets of your ministry’s leaders in the event that they or your ministry become obligated to pay financial damages as the result of wrongful leadership decisions or activities. Depending on the insurance provider, this coverage also includes a limited amount of defense funds for your ministry to use to mount a defense in the event you are sued. Some policies include spouses of ministry leaders when they are engaged in ministry activities.
Who is a director or officer?
Insurance policies usually define a director or officer as a leader, specifically serving as a board member, administrator, director, officer, or trustee, and acting within the scope of the leadership authority granted by the bylaws of an organization.
When do you need D&O coverage?
This coverage protects directors and officers when they are held personally liable for financial damages that result from their actions as board members. These damages must result from the failure of leaders to perform their duties in a proper way.
Why do you need D&O coverage?
D&O provides defense funds to refute a claim or to prove immunity under the law. Even if your state has legislation protecting nonprofit directors and officers from lawsuits, you still may need D&O insurance. In some cases, the statutes specify activities for which immunity is intended, but they typically don’t protect the organization. With D&O coverage, the organization is protected in relation to covered financial damage claims.
Individuals in directors and officers positions are a vital part of any ministry. They need to be protected in unforeseen circumstances, making it especially important to consider the benefits of D&O liability coverage. Other aspects of your ministry are protected by insurance, why shouldn’t directors and officers be protected, too?
- July 22, 2021
- Thousands in Relief Funding Available to Ministries Through the Employee Retention Credit
-
-
Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps. This post includes some highlights about the credit and guidance on where to start to see if your ministry is eligible.
- April 23, 2021
- Predictions and Insights for VBS 2021
-
-
If your church is anything like mine, Vacation Bible School (VBS) is a big deal. Not just because it is central to our ministry’s outreach to young families, but because of the important role that VBS plays in the spiritual formation of children.
- April 13, 2021
- Take Time to Review Your Ministry's Child Protection Plan
-
-
April is National Child Abuse Prevention Month. Though child abuse may not be something you could ever imagine happening within your ministry, sexual abuse of a minor is one of the top five reasons churches end up in court, according to Church Law & Tax. Studies also show that a child is much more likely to be sexually abused by a trusted adult than a stranger.
- March 16, 2021
- Prepare for Severe Spring Storms Now
-
-
When severe storms strike, they can produce high winds and tornadoes. Damaging winds can wreak havoc on your ministry’s property and to buildings. A high wind event can crash debris through your windows, strip your siding, down trees on your parking lot, peel shingles off your roof, and fling back the flashing.
- February 25, 2021
- Catalytic Converter Theft on the Rise: Protect Ministry Vehicles
-
-
Thieves are taking advantage of soaring precious metal prices. Take steps to protect your ministry’s vehicles and property.
- February 15, 2021
- Grant Funds Available for Safeguarding Ministries
-
-
As the Director of Ministry Safety for our agency, I am dedicated to finding ways to help safeguard ministries like yours.
- February 5, 2021
- Avoid Frozen Pipes as Temperatures Plummet
-
-
As temperatures plummet, the risk of freezing pipes jumps. Frozen pipes can cause costly messes that could also put your ministry on hold while you clean up.
- January 12, 2021
- Potential Vulnerabilities in School's Safety Plan
-
-
On behalf of our agency, I recently participated in one such training which focused on strategies and tactics for responding as a single officer to an active safety threat in a school building.
- January 5, 2021
- Church Safety Trends for 2021
-
-
If you’re anything like me (and maybe the rest of the world for that matter), you’re grateful to put the craziness of the past year behind us.
- November 23, 2020
- COVID-19 and the Christmas Season
-
-
Preparing for this Christmas season may require additional creativity, due to the uncertainty of what COVID-19 may bring in our local community.
- October 28, 2020
- Guidance for Ministries About Boy Scouts' Bankruptcy
-
-
A mid-November deadline in the Boy Scouts of America’s (BSA) bankruptcy proceedings may have you wondering what the organization’s bankruptcy filing means for your ministry if you ever hosted or chartered Boy Scout Troops.
- October 27, 2020
- Self-Defense or Second-Degree Murder?
-
-
On October 10, 2020, in Denver, Colorado, a 30-year-old private security guard who was hired to protect a Denver news crew while covering protests was involved in a deadly shooting that claimed the life of a 49-year-old man.
- October 1, 2020
- Applying for PPP Loan Forgiveness
-
-
Organizations that obtained Paycheck Protection Program (PPP) funding through the CARES Act can have their loans forgiven, turning them into grants. To qualify, each borrower must file a forgiveness application with its PPP lender, proving that it followed the rules. If your church, school, college, or camp meets all the criteria, 100% of its loan can be forgiven.
- August 27, 2020
- Emergency Dispatch: Cameron Peak
-
-
Lessons learned from the front line of a wildland fire.
- August 20, 2020
- Colorado Wildfires: Prepare Your Ministry Now
-
-
Four major wildfires are burning across Colorado, fueled by dry vegetation, drought and wind.
- April 13, 2020
- Beware of COVID-19 Cyber Scams
-
-
Ministries are creatively scrambling to continue their operations and safely engage their congregations with an array of online technologies during the coronavirus pandemic. Unfortunately, hackers are ready to take advantage of the confusion with scams designed to steal valuable data or siphon funds from your ministry. Learn how to keep your ministry safe from scams.
- March 30, 2020
- CARES Act: Churches Need to Apply Now
-
-
Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.
- March 6, 2020
- Coronavirus and Your Ministry: Tips for Prevention
-
-
As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.
- January 29, 2020
- Hosting a Game Day Bash? Brush Up on Copyright Basics
-
-
The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.
- October 28, 2019
- Are You Covered If You're Injured Overseas?
-
-
Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.