Whether you are on the board of directors of a multinational company or your local little league association, by law, you are subject to the same responsibilities and liabilities.
Should you be wishing to accept a position on a board as a volunteer, it is prudent that you take the time to do your due diligence. Request a copy of the position description, by-laws of the association and, a copy of the Directors’ & Officers’ liability insurance policy. If these are not in place, you may want to re-think your decision, as there is no protection or direction to enable you to carry out your duties. Ask if there are any outstanding issues that may directly affect the association. For example, is the association in good financial standing, or have there been any issues that may give rise to a claim being brought against the association?
Most municipalities have an agreement in place with their insurance broker or company, to provide ‘not for profit’ associations with Directors’ & Officers’ liability coverage at a reasonable cost, should your association not have anything in place. In addition, a number of insurance companies provide coverage for individuals who sit on a ‘not for profit’ board under their homeowners' insurance policy.
Contact your insurance broker for advice on how best to protect your assets while at the same time doing a worthwhile duty by volunteering as a board member.
Resources
Volunteer Canada is a great resource for complete details. Once on their website, click on 'topics & Resources'. then on 'Board Volunteering'.
This will benefit both you and your association, by providing guidelines to protect you, your association and the participants.
Have any questions? We can help.
Contact us—we can help you access and use your MyMills portal and app.
Tollfree: 800-953-0999 Phone: 416-489-5570 Email: contactus@millsinsurancebrokers.ca
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