Non Profit Insurance Coverage Is Must In Today's Litigious Times

Non profits organizations appoint directors and officers who have the authority and freedom to take important decisions on behalf of the organization and they also are fully responsible for all the activities carried out by non-profit. The general perception among public is that these directors and officers who are contributing their precious time and energy to serving the public cause shouldn't have to be worried about a lawsuit. But it is not entirely true in the sense that at least 45 percent of functional non-profit organizations are not immune from facing the minimum of one directors and officers' liability claim during its existence.

Considering this undeniable fact, it becomes important to get a suitable and affordable Non Profit Insurance Coverage to stay protected against any liability claim against any of its directors and officers. Directors and officers liability insurance has become an integral part of any comprehensive insurance coverage purchased by a non-profit organization. It has become a necessity in today's time when even a little error from any member of the church management can result in a possible lawsuit. This type of insurance offers financial protection to board members due to allegations of involving in wrongful acts, including conflict of interest, financial irregularities, spreading false or misleading information, acting in an irresponsible manner, and much more.

The court will decide whether or not there's an actual liability, but a lawsuit has to be defended in the court and there is a procedure to follow and legal defense costs involved which have to be accrued whether or not your organization wins or loses in the court. Recent reports have revealed that any non-profit organization faces high possibility of being sued by one of its own employees on the grounds of alleged sexual harassment, discrimination, wrongful termination, molestation, failure to grant tenure, deprivation of career opportunity, invasion of privacy, and much more. There are so many reasons that your organization can be sued by one or more individuals. Therefore, it becomes the responsibility of board of directors to supervise each and every activity of organization, the conduct of its employees including themselves to avoid any unwarranted situation. Majority of non-profits purchase Non Profit Insurance Coverage because it gives them a sense of relief and peace of mind that if any lawsuit is filed against their organization, they have a reliable financial cover which offers fair and reasonable compensation for financial losses accrued during the process of legal defense.

Directors and officers liability insurance has continued to undergo significant changes ever since it was introduced 35 years ago. Initially, it only covered directors and officers, but now its coverage extends to other personnel including trustees, employees, volunteers, etc,. These are litigious times when organization cannot afford to be without directors and officers liability insurance. Contact a reputable and credible church insurance agency that can offer you a comprehensive and effective non-profit insurance coverage that will provide fair and reasonable financial protection against liability claims in case your organization has to defend itself in the court against allegations by other individuals.

Integrity Now Insurance Brokers offer an array of services, including church property insurance and church liability insurance. We are here to help with all of your church insurance needs.