I am surprised that the article did not really discuss Non-Profit D&O.
ALL NON_PROFITS NEED D&O insurance.
Especially, as the article discusses, during this time for transition. One of the main D&O claims a non-profit can see relates to Mission Drift. If their mission specifically states that they non-profit exists to do A, B and C… then years later, a new need arrives, and they take on a new task… D. Well, if they don’t go back and update their Bylaws they could end up acting outside of their legal scope. Remember that being a Non-profit is something a non-profit has to apply for. Expanding their scope is outstanding… but not if they don’t update their key documents like Bylaws, articles of incorporation, etc.
If an agent works with a non-profit, and if that agent does not sell the non-profit a D&O policy,,, then I contend that the agents own E&O is exposed.
I am surprised that the article did not really discuss Non-Profit D&O.
ALL NON_PROFITS NEED D&O insurance.
Especially, as the article discusses, during this time for transition. One of the main D&O claims a non-profit can see relates to Mission Drift. If their mission specifically states that they non-profit exists to do A, B and C… then years later, a new need arrives, and they take on a new task… D. Well, if they don’t go back and update their Bylaws they could end up acting outside of their legal scope. Remember that being a Non-profit is something a non-profit has to apply for. Expanding their scope is outstanding… but not if they don’t update their key documents like Bylaws, articles of incorporation, etc.
If an agent works with a non-profit, and if that agent does not sell the non-profit a D&O policy,,, then I contend that the agents own E&O is exposed.
It is not “nonprofit” it is nontaxpayer of income tax, unemployment tax, property tax, inventory tax…..
There as a time wherein a “nontaxpayer” could only be granted if it provided a service that was not currently being provided by a tax payer.