For most of 2016, pricing in the property/casualty market for the nonprofit sector has remained soft. As the year progressed, it got softer. What does that mean? Periods of a soft markets are typically characterized by lower premiums, broader coverages, reduced underwriting criteria, more capacity (higher limits and more choices), and increased competition. However, in 2017, the market has begun to harden.Read More
Many 501(c)(3) nonprofit organizations have inspiring stories behind their creation. It’s not uncommon for passionate founders and directors to devote years of hard work and their own funds to move the conception of an idea into the birth of an organization dedicated to their cause. Often with little or no monetary compensation, nonprofit directors and officers rely on intangible rewards—the stories of the difference they’ve made in the community and peoples’ lives—as incentive to continue laboring over their mission.
But a costly lawsuit could quickly put an end to that story. Do people really sue nonprofit organizations? The answer is yes. In some instances, lawsuits can drain a nonprofit's limited funds to the point where they have to close their doors. At the point where a nonprofit reaches insolvency, directors’ and officers’ personal assets are at risk.
This article outlines the risks that nonprofit directors and officers can encounter, including the types of claims brought against directors and officers, and ways to mitigate the risk of a costly claim.Read More