Directors' Liability Insurance Foundation

You are a board member of a foundation. This makes you (co-)responsible for the decisions taken by the foundation. It does not matter whether it is a large or a small foundation. But what if something goes wrong? And you as a board member are held liable for the damage?

This is what the director's liability insurance. It covers certainThis covers certain damages if you or another board member is held liable.

When is directors' and officers' liability insurance needed for a foundation?

Does your foundation have several board members? Ndo these board members individually or together decisions? Then it is wise to take out directors' and officers' liability insurance. When several board members take different decisions, the risk of errors is present.. Thethem made errors Seeken might be wrong for the foundation and and may cause damage.

In thehe cases discussed above As a board member, it is nice to have a certain form of security. As you or the foundation become liable be held held liable, it is nice to have coverage for those types of liability.. After all, you want to after all not want to have to carry your entire private assets lose your private assets.

What is covered by a directors' and officers' liability insurance?

There are a number of risks that by directors' and officers' liability insurance be covered. These are set out below.

Internal liability

In this case, a board member is held liable by the foundation (legal entity) itself. This can happen, for example, when a board member has incurred expenses on behalf of the foundation without discussing it.. Think also the unauthorised use of a company car or similar situations. The foundation tries to cover these costs as a as a legal person is now trying These costs the foundation as a legal entity is now trying to recover from the board member.

External liability

In the case of external liability, a board member is held liable by a third party. This can be damage caused by a breach of contract. In such cases, in addition to compensation for the damage incurred, the board member must take into account the litigation costs incurred by the other party.

Private assets

It is possible to recover damages from the private assets of a board member. The costs can be considerable. A directors' and officers' liability insurance ensures that your private assets private assets are safeguarded up to the insured amount. In that respect a good choice: to make mistakes is human.

Entry and exit

This has to do with the end and start date of your insurance.

The walk-in ensures that you are insured for damage that occurred before thebeforebefore the effective date. Well you can However, you can only be held liable after the effective date.

The run-off refers to liabilities incurred after the insurance has been already has already expired. You canunt be insured in this case for certain for certain forms of liability.