Directors and Officers Liability Insurance

blog-directorsDear Sherri: I sit on the Board of a large non-profit organization that already has Directors and Officers Liability. As a result of my work on this Board, I was recently asked to join another Board of Directors also of a non-profit organization. Will the policy I am currently insured under provide coverage for me on this second board?
NY Boarder

Dear NY Boarder,
Oh God, now I’m bored! Anyway, in answer to your question, yes, the original D&O policy will provide coverage, provided that it includes coverage for “Outside Directorship”. This is an automatic extension that provides coverage for directors serving on other non-profit boards as part of their duties. I know this sounds like a “Who’s On First” skit, but it is something important to consider before accepting an invitation to sit on another Board. So check the policy to make sure that “Outside Directorship” coverage is included and that the second Board is also a NON-PROFIT ENTITY.

Be sure to call your insurance agent for more details.

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