Directors' liability insurance foundation

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

For this purpose, the directors' liability insurance. It covers certaincertain damages if you or another board member is held liable.

When is directors' liability insurance required for a foundation?

Does your foundation have multiple board members? Ndo these board members individually or together decisions? If so, it is wise to purchase directors' liability insurance. When multiple board members make multiple decisions, the potential for error exists. Thethem made mistakes grabken may be wrong for the foundation and may cause damage.

In the cases discussed above as a board member, it is nice to have some form of assurance. If you or the foundation become liable is held, it is nice to have coverage for those forms of liability. After all, you after all not to have your entire private assets lose.

What is covered by a directors liability insurance foundation?

There are a number of risks that are by director's liability insurance are covered. These are outlined below.

Internal liability

Here, a board member is held liable by the foundation (legal entity) itself. This can occur, for example, when a board member has incurred expenses from the foundation without discussing this. Think also of the unauthorized use of a company car or similar situations. These costs the foundation is trying to as a legal entity now 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. Here, in addition to compensation for damages incurred, the board member must take into account litigation costs incurred by the other party.

Private assets

It is possible to recover damages from one's private assets of a board member. Here the costs can be considerable. A director's liability insurance ensures that your private assets protected up to the insured amount. A good choice in this regard: making mistakes is human.

Entry and exit

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

The walk-in ensures that you are insured for damage that occurred vbeforebefore the effective date. Well can You can only be held liable after the effective date.

The walkout sees liability incurred after the insurance already expired. You kunt be insured for certain forms of liability insurance.