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ESTATE | Insurance To Protect Those Who Serve

Recently Reed Hastings, CEO of Netflix, stepped down from Facebook’s Board of Directors. I’ve been anxiously awaiting a call from their recruiter to replace him, alas my phone has not rung. They must have concerns about my time constraints given my other board positions, like co-president of the drama booster club at our local high school.


Charitable giving and service is a focus of many of the families with whom we work. Actively participating with non-profit organizations is often more valuable for the organization than simply making a donation. Non-profits benefit greatly from your life experience; even when that experience may not be directly relevant to the organization’s primary focus.


My mother, as a full is a talented executive of a family-owned and operated enterprise founded almost 50 years ago. Even without traditional professional experience, she passionately served as board member of a multi-national microfinance non-profit organization for over five years.


Directors and Officers Liability Insurance


Many of our clients are directors or officers of both public and private corporations; many more are directors or officers of other organizations including those related to schools, sports, churches, or other charities. One important aspect of serving on boards that is often overlooked is Directors and Officers (D&O) liability insurance.


D&O insurance helps protect directors and officers of public and private for-profit businesses of all sizes, nonprofit organizations and educational institutions.


A D&O insurance policy provides financial protection against claims arising from actual or alleged "wrongful acts" of directors and officers as they serve within the scope of their managerial duties. A D&O policy is designed to pay for defense costs and financial losses. Some policies may also cover the costs associated with administrative and criminal proceedings and with investigations by regulators or criminal prosecutors.


D&O insurance is not designed to cover certain risks, such as those attached to fraud, intentionally bad acts, illegal remuneration, property damage and bodily harm, and preexisting legal actions.


When you are asked to fill the role of a director or officer, please consider asking for written confirmation of the organization’s D&O coverage. If they will not, or cannot provide, an affordable policy can be provided by your local insurance agent. Similarly, we are always willing and able to help evaluate and provide the risk management needed, allowing you to generously serve where you can make a difference.

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