Post by Logan on Jun 25, 2016 16:00:46 GMT -6
High-profile New Schools’ board, officers unprotected after insurance policy goes unpaid
After the nonprofit NC New Schools suddenly collapsed in April, its high-profile board of directors learned that the unpleasant news went beyond a bankruptcy filing.
The board’s insurance policy had lapsed, leaving the directors unprotected against lawsuits or legal claims.
It is extremely unusual for nonprofits to lack directors and officers insurance, commonly known as D&O insurance, according to UNC law professor Thomas Hazen, an expert on nonprofits.
“My basic advice is never serve on a board that doesn’t have insurance,” Hazen said. “Not even a neighborhood association.”
Read more here: www.newsobserver.com/news/local/education/article85962707.html
Oops! Some board members with some deep pockets might have to pay attorney fees if they are sued because of the oversight of letting the D&O policy lapse.
After the nonprofit NC New Schools suddenly collapsed in April, its high-profile board of directors learned that the unpleasant news went beyond a bankruptcy filing.
The board’s insurance policy had lapsed, leaving the directors unprotected against lawsuits or legal claims.
It is extremely unusual for nonprofits to lack directors and officers insurance, commonly known as D&O insurance, according to UNC law professor Thomas Hazen, an expert on nonprofits.
“My basic advice is never serve on a board that doesn’t have insurance,” Hazen said. “Not even a neighborhood association.”
Read more here: www.newsobserver.com/news/local/education/article85962707.html
Oops! Some board members with some deep pockets might have to pay attorney fees if they are sued because of the oversight of letting the D&O policy lapse.