Breach of Fiduciary Duties
As board members, understanding and fulfilling your fiduciary duties is paramount. These duties include the responsibility to be aware of both written and unwritten laws, as well as the organization’s governance document.
Negligence in fulfilling these duties can lead to personal liability for board members. Directors and Officers (D&O) liability insurance provides coverage for such circumstances.
Obtaining D&O coverage requires providing the insurance company with information about the organization’s governance, including its constitution, bylaws, and meeting minutes.
Failure to adhere to fiduciary duties can arise from ignorance or misunderstanding of responsibilities. Proper education and resources are essential for board members to effectively discharge their duties.
Liable Slander and Privacy Issues
Charities that collect and maintain sensitive personal information have an obligation to protect it. Liable slander and privacy issues can arise from the unauthorized disclosure of such information.
The pulpit is a public forum, and statements made there are considered public record. Caution should be exercised to avoid making defamatory statements or disclosing private information.
Policies and procedures for handling confidential information should be established to minimize the risk of liability.
General liability insurance policies typically cover personal injury, which includes damages to reputation or disclosure of information.
Board members should be aware of the potential for liable slander and privacy issues and take steps to protect the organization and its members.