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Did You Know?

RISK MANAGEMENT AND YOUR BOARD

As the leaders of your organization, it is important to have Board support for your risk
management program. This will help the Board understand the organization’s need to invest time and resources into activities such as developing and implementing
policies and procedures, or buying insurance coverage.

 

• How to Read your Policy
• What is Covered
• Organizing your Insurance Paperwork
• Renewing your Policy
• Cancelling your Policy
• Making a Claim
• Working with your Board

Your Board's Liability
Insurance Information for Your Board

Working With Your Board

Whether your organization’s Board is a hands-on operating Board that makes day-to-day decision, or a governance Board that looks at the big picture, part of their role is to ensure that the organization manages its risk whether through policies or procedures, or buying the appropriate insurance coverage.
This section contains information to help you inform your Board members about insurance issues, including a two-page insurance primer that you can copy and use directly in your Board manual or orientation.

1) Your Board’s Liability

There are two different liability policies that address Board members’
personal liability:
- Commercial General Liability that deals with alleged ‘wrongful acts’ that result in bodily injury or property damage loss to the claimant, and - Directors’ and Officers’ liability that deals with alleged ‘wrongful acts’ that result in financial loss to the claimant.
As part of a Board’s duties, they need to have a clear understanding of the organization’s risk and liabilities, and how these are being addressed through risk management measures such as insurance.

2) Insurance Information for Your Board

In addition to the Insurance Primer for Board Members, the following summary of information should be provided to your Board:

• Summary of your organization’s insurance program including the types of insurance coverage, amounts of coverage, and premiums.
• Detailed information about your Directors and Officers (D&O) coverage and general liability coverage.
• Overview of your organization’s risk management activities and summary of how the risks are being addressed (through insurance or other means).