skip to main content
Travelers Logo
  • About
  • Careers
  • Agents
  • Investors
  • Sustainability
  • Contact Us
  • For Individuals
    • Overview
    • Products
      • Car
      • Home
      • Renters
      • Condo
      • Landlord
      • Boat & Yacht
      • Flood
      • Motorcycle
      • Travel
      • Pet
      • Weddings
      • Umbrella
      • All Products
    • Prepare & Prevent
      • Insurance 101
      • Home Central
      • Travelers Garage
      • Managing Through COVID-19
    • Affinity Group Discount
    • Online Service
    • Pay Your Bill
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • For Business
    • Overview
    • Products & Solutions
      • Overview
      • Boiler & Machinery
      • Commercial Auto & Trucking
      • Cyber
      • Environmental Liability
      • Excess Casualty & Umbrella
      • General Liability
      • Global Insurance
      • Inland Marine
      • Management & Professional Liability
      • Ocean Marine
      • Property
      • Business Owner's Policy
      • Surety Bonds
      • Workers Compensation
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Industries
      • Overview
      • Agribusiness
      • Architects, Engineers & Surveyors
      • Auto & Truck Dealers
      • Business & Professional Services
      • Construction
      • Education
      • Energy & Renewable
      • Equipment Dealers
      • Financial Institutions
      • Food Services
      • Health & Related Services
      • Hospitality & Recreation
      • Manufacturing
      • Marine Industries
      • Museums & Fine Art
      • Non-Profit
      • Oil & Gas
      • Public Entities
      • Real Estate
      • Retail
      • Technology
      • Transportation
      • Wholesale & Distribution
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Services
      • Overview
      • Risk Control
      • Claim
      • Premium Audit
      • Online Customer Tools
      • Risk Management Information Services
      • Travelers Client Advantage
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Small Business
      • Overview
      • Automobile Insurance
      • Business Owner's Policy
      • Data Breach
      • Employment Practices Liability
      • Professional Insurance
      • Umbrella Insurance
      • Workers Compensation Inurance
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Large Business
      • Overview
      • Casualty
      • Cyber
      • Management & Professional Liability
      • Property
        • Find an Agent
        • File a Claim
        • Pay Your Bill
    • Multinational Business
    • Prepare & Prevent
      • By Topic
      • By Industry
      • Navigating Your Business Through COVID-19
        • Find an Agent
        • File a Claim
        • Pay Your Bill
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • Claim Center
    • Claim Center
    • Should I File a Claim?
    • File a Claim
    • Roadside Assistance
    • Find a Service Provider
    • Check Your Claim Status
    • Manage Your Claim Experience
      • Understanding the Claim Process
      • Claim Guide Library
      • Workers Compensation Resources
    • Claim Capabilities
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • Prepare & Prevent
    • For Individuals
    • Home Central
      • Buying & Selling
      • Home Maintenance
      • Home Renovation
      • Home Safety
      • Moving
      • Smart Home
    • Travelers Garage
      • Buying & Selling
      • Car Maintenance
      • Distracted Driving
      • Safe Driving
      • Teen Driving
      • Boating
    • Insurance 101
    • Weather
    • For Business
    • Industries
      • Construction
      • Manufacturing
      • Nonprofit
      • Small Business
      • Technology
    • Topics
      • Business Continuity
      • Cyber
      • Driver and Fleet Safety
      • Facilities Management
      • Internet of Things
      • Product and Services Liability
      • Supply Chain Management
      • Workplace Safety
    • Travelers Risk Index
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
  • About Travelers
    • Overview
      • Awards & Recognition
      • Careers
      • Community
      • Diversity & Inclusion
      • Sustainability
      • History
      • Investors
      • Media Resources
      • News
      • Travelers Championship
      • Travelers Institute
      • Get a Quote
      • Find an Agent
      • File a Claim
      • Pay Your Bill
    • Get a Quote
    • Find an Agent
    • File a Claim
    • Pay Your Bill
Main Navigation
  • For Individuals
      • Insurance for Individuals
      • Products
        • Car
        • Home
        • Renters
        • Condo
        • Landlord
        • Boat & Yacht
        • Flood
        • Motorcycle
        • Travel
        • Pet
        • Weddings & Events
        • Umbrella
        • More
      • Prepare & Prevent
        • Insurance 101
        • Home Central
        • Travelers Garage
      • Affinity Group Discount
      • Online Service
      • Pay Your Bill
    • Get a home quote now

      It's easy to get a free quote for home insurance from Travelers in just a few minutes.

       

      Get a home quote now
  • For Business
      • Products & Solutions
        • Commercial Auto & Trucking
        • Cyber
        • General Liability
        • Management & Professional Liability
        • Property
        • Business Owner's Policy
        • Surety Bonds
        • Workers Compensation
        • More
      • Industries
        • Construction
        • Energy & Renewable
        • Financial Institutions
        • Healthcare
        • Manufacturing
        • Real Estate
        • Technology
        • Transportation
        • More
      • Prepare & Prevent
      • Services
        • Risk Control
        • Claim
        • Premium Audit
        • More
      • Pay Your Bill
      • Small Business
      • Large Business
      • Multinational Business
      • For Business Overview
    • Tips for Managing Risks Related to a Remote Workforce

      Tips for Managing Risks Related to a Remote Workforce

      With the current reality of more employees working from home through the pandemic, is your business ready for all the implications?

      Learn more
  • Claim Center
      • Claim Center
      • Should I File a Claim?
      • File a Claim
      • Roadside Assistance
      • Find a Service Provider
      • Check Your Claim Status
      • Manage Your Claim Experience
        • Understanding the Claim Process
        • Claim Guide Library
        • Workers Compensation Resources
      • Claim Capabilities
    • Send us your receipts, photos, invoices and more with just a push of a button.

      Securely share information with your Claim team.

      Send us your receipts, photos, invoices and more with just a push of a button.

      Upload a File
  • Prepare & Prevent
      • For Individuals
      • Home Central
        • Buying & Selling
        • Home Maintenance
        • Home Renovation
        • Home Safety
        • Moving
        • Smart Home
      • Travelers Garage
        • Buying & Selling
        • Car Maintenance
        • Distracted Driving
        • Safe Driving
        • Teen Driving
        • Boating
      • Insurance 101
      • Weather
      • For Business
      • Industries
        • Construction
        • Energy
        • Manufacturing
        • Nonprofit
        • Small Business
        • Technology
      • Topics
        • Business Continuity
        • Cyber
        • Driver and Fleet Safety
        • Facilities Management
        • Internet of Things
        • Product and Services Liability
        • Supply Chain Management
        • Workplace Safety
      • Travelers Risk Index
    • Managing Through COVID-19

      Managing Through COVID-19

      Resources to help you adapt to the realities of COVID-19.

      Learn more
  • Home
  • Prepare & Prevent
  • Industries
  • Nonprofit
  • 6 Considerations Before Joining a Nonprofit Board [Video]

6 Considerations Before Joining a Nonprofit Board [Video]

It may be the last thing you are thinking about when you volunteer on the board of a nonprofit, but are you aware you might be putting your personal assets at risk? The reason for that is nonprofits face many of the same threats as for-profit businesses, including the potential for lawsuits. If the nonprofit is sued and lacks the proper planning and protection, you could lose your savings, your home and other assets.

Nearly two out of three nonprofits reported a Directors & Officers liability claim within the past 10 years.1 These lawsuits can be brought by donors, vendors, competitors, employees, government regulators and others, and they are not limited to suing the nonprofit organization. As a member of the board, you could also be sued personally, and be responsible for the cost of hiring your own attorney to defend yourself.

“Serving on a nonprofit board can be a commitment of your time, talent and treasure,” says Thomas Herendeen, Non-Profit D&O Product Manager for Travelers. “You’ll want to take the time to understand the nonprofit’s mission, how it operates and whether you might have any conflicts of interest before you decide to join a board.”

Asking a few questions in advance can help you protect your personal assets, while also helping to ensure that the nonprofit has the strong board governance procedures and the proper coverage in place to protect its mission.

Following are six things to consider before you join a nonprofit board.

1. What’s expected of you as a board member?
    
Learn what other board members will expect of you, such as:

  • Are there specific governance responsibilities?
  • What is the time commitment and how many meetings does the nonprofit hold?
  • Are you expected to fundraise on behalf of the group?

2. Who else sits on the board of directors?

  • Who chairs the board? Consider meeting with the chairperson before committing to the board.
  • What is his or her leadership style? Is the board committed to effective governance?
  • Attend a board meeting before you commit to joining the board.

3. Does the organization have employees?

  • If so, does the organization have an employee handbook and other written employment policies and procedures?
  • Are managers and employees trained to make sure that they comply with employment laws?
  • Are personnel decisions centralized and made by human resource professionals?

4. Have you reviewed the reporting and corporate governance documents and the bylaws?

  • Review budgets, employee salaries and resource allocations, among other financial documents. What percentage of funds are used for administrative costs compared to fulfilling the organization’s mission?
  • Check to see if complete, up-to-date board meeting notes and other records are maintained. These could help in a future dispute.
  • Do the bylaws provide indemnification to the board members to the fullest extent permitted under the law?
  • Do the bylaws provide for the advancement of defense expenses?

5. Are there pending or past lawsuits or regulatory investigations?

  • Recent auditing issues or internal disagreements could influence your decision to join the board.
  • Check the media and charity evaluation websites for negative ratings or reviews.

6. Does the organization have a Directors & Officers Liability insurance policy?

  • If so, it’s also important to understand the scope of coverage and limits of liability provided to make sure you’re protected.
  • What is the financial rating of the insurance carrier?
  • Does the carrier offer risk management tools to help to the nonprofit organization mitigate risk?

It can be a rewarding experience to serve on a board of a nonprofit organization, but it is important to protect yourself by doing the legwork necessary to make an informed decision about all the potential risks before doing so.

Sources:
1 Towers and Watson Directors & Officers Liability Survey, 2012.

Learn More About Nonprofit Insurance

More Prepare & Prevent

Volunteer on home build site

Is Your Nonprofit's Mission Protected?

Help protect your nonprofit organization from these three risks.

Uncover Risks for Directors & Officers Insurance

Uncover Risks for Directors & Officers

Learn more about unseen risks and how coverage can help businesses prepare.

Download Transcript

Uncover Risks for Directors & Officers [Video]

Uncover Risks for Directors & Officers

Learn more about unseen risks and how coverage can help businesses prepare.

Download Transcript

Learn more about unseen risks and how coverage can help businesses prepare.

Confidential file being taken out of a drawer

Protecting Your Nonprofit from Crime

Employee crime can be devastating for a nonprofit without the proper coverage.

Top Stories
Volunteer at a home build site

Is Your Nonprofit's Mission Protected?

Learn about protecting your nonprofit organization from potential risks and how to help ensure that your nonprofit is Mission: Protected.

  • Learn more

Related Content

  • Crisis Communications Planning for a Data Breach
  • Is Your Nonprofit Prepared for a Data Breach?
  • How Does a Data Breach Happen?

Explore Nonprofit Insurance

Travelers understands the unique risks of nonprofit organizations and the importance of protecting your mission.


Find an Agent

Need an Agent?

Get the personal service and attention that an agent provides.

Find a local agent in your area:


See All Nonprofit Content


Travelers logo

Travelers and The Travelers Umbrella are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries.
© 2023 The Travelers Indemnity Company. All rights reserved.

  • Travelers on Facebook
  • Travelers on YouTube
  • Travelers on Twitter
  • Travelers on LinkedIn
  • Travelers on Instagram

Products & Services

  • For Individuals
  • For Businesses
  • Claim Services
  • Prepare & Prevent

Our Company

  • About Travelers
  • Careers
  • Investors
  • Sustainability
  • Travelers Institute

Connect

  • Customer Support
  • MyTravelers®
  • For Agents
  • Find an Agent

Legal & Compliance

  • Terms of Service
  • Privacy & Security
  • Cookie Settings
  • Accessibility
  • Producer Compensation Disclosure