Regardless of the size of your non-profit organization, it is essential that you are properly protected against the risk of a lawsuit. Although it can seem like the social purpose of a non-profit somehow keeps its directors and officers shielded from being personally liable if anything goes wrong, this is not – in fact – the case. Even though your non-profit may have an unwavering social mission, you must still be appropriately insured in Toronto to remain protected throughout a potential lawsuit.
Especially when your directors and officers may have plenty of zeal but little experience in operating a non-profit, it is important that they are able to make decisions and run the organization without the fear of a lawsuit. Having confidence that you will be protected in the event of a potential problem will allow your executive team to spend more of their efforts on doing their jobs and not being constrained in the scope of their responsibilities.
It is certainly true that every non-profit organization is different. This implies that your exposure to the risk of a lawsuit will vary depending on what activities your firm is involved in and how you interact with the public. At KASE, we tailor insurance solutions to ensure that our clients receive wide-ranging coverage and remain safe from all manner of risks encountered in the course of business.
This type of non-profit D&O insurance in Toronto is used for protecting directors and officers from losses (including defence costs) that have been incurred from any legal cases brought against the organization for their actions. While it may be unthinkable that anyone would sue a non-profit aimed at improving some aspect of society, such lawsuits are filed every day.
Just as with corporate liability insurance, this form of non-profit D&O insurance in Toronto is aimed at keeping the key staff of a non-profit organization safe from financial harm. While your organization may rightly or wrongly be sued, this insurance coverage will keep the individual members of your team protected.
This form of insurance is so important because of the monetary amounts that many lawsuits filed against non-profits can involve. If legal action is ever taken against you or one of the other directors or officers in your non-profit, then the potential settlement or payout can easily exceed one’s net worth. This will place you or a member of your team in serious financial distress and will likely require you to file bankruptcy.
For actions that you conducted while working for a non-profit, you may find yourself under fire from any kind of lawsuit from a member of the public or stakeholders that you work with. Frivolous or not, the legal expenses incurred during a court case can also be a serious financial inconvenience.
It is important to realize that this form of liability insurance is far more comprehensive in scope than various volunteer protection legislation. While these laws are in place to protect individuals who act and make decisions within the context of helping or serving an organization, they are somewhat limited in terms of the protection that they provide.
The most important component of this form of non-profit D&O insurance is coverage for the legal costs that you may accrue for actions you conducted while working with your Toronto
non-profit. Beyond the financial damages that may be levied on a member of your team in the wake of such a lawsuit, the initial costs of hiring a legal team and protecting your organization can be exorbitant. Having a reliable means of being able to cover these costs with non-profit D&O insurance in Toronto is important.
One of the things that non-profit directors’ and officers’ liability insurance does not cover is intentional criminal activity. This kind of willful disregard – which can include certain acts or even the provision of misleading statements or the failure to report certain matters – does not receive protection from this form of insurance. If you want to ensure that your non-profit stays safe, be sure not to tread into the waters of illegal profits, fraud and “wrongful acts” broadly defined!
Naturally, this form of insurance is important for directors and officers working with or leading a non-profit organization in Toronto (or elsewhere). Any member of your team who may be susceptible to receive allegations of some form needs to consider the necessity of this insurance. You must consider acquiring it for your organization writ large in order to keep each member of your team safe and to avoid devastating financial interruptions for your non-profit.
Keep in mind that many talented and potentially valuable individuals who may be considering joining your organization will look to see if you have this kind of protection. Since this type of non-profit D&O insurance is the norm in Toronto, you will likely miss out on attracting great people to your organization if you lack this protection.
If you want to be confident that your business is covered in the case of any contingency, then you need insurance brokers who understand your company and your industry. We understand that the needs of every non-profit will be different – often even within the same industry. Not all brokers have worked with such a diverse array of clients as the experienced and expert team at KASE Insurance has.
With KASE Insurance, you can be sure that the well-being of our clients is our top priority. We have worked with many non-profits throughout the years in many different industries. We always find a solution that is comprehensive and tailored to the specific needs of each client.
Contact our friendly and professional team of brokers today to learn more about non-profit D&O insurance in Toronto and how it can benefit you. Contact us today!
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