Directors' liability insurance foundation

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

Does your foundation have multiple board members? Do these board members make decisions individually or collectively? If so, it is wise to take out directors' and officers' liability insurance. When multiple board members make different decisions, there is a risk of errors. These errors may have negative consequences for the foundation and cause damage.  

In the cases discussed above, it is nice to have some form of security as a board member. If you or the foundation are held liable, it is good to have coverage for those forms of liability. After all, you do not want to lose your entire private fortune.   

What does a foundation's directors' and officers' liability insurance cover?

There are a number of risks covered by directors' and officers' liability insurance. These are outlined below.  

Internal liability 

In this case, a board member is held liable by the foundation (legal entity) itself. This can occur, for example, when a board member has incurred costs on behalf of the foundation without discussing this first. Other examples include the unauthorized use of a company car or similar situations. The foundation, as a legal entity, is now attempting to recover these costs from the board member.  

External liability 

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

Private assets 

It is possible to recover damages from the private assets of a board member. This can result in substantial costs. Directors' and officers' liability insurance ensures that your private assets are protected up to the insured amount. In that respect, it is a wise choice: to err is human. 

Entrance and exit 

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

The waiting period ensures that you are insured for damage that occurred before the effective date. However, you can only be held liable after the effective date. 

The extension covers liability claims after the insurance has already expired. In this case, you can insure yourself against certain forms of liability. 

Damage claims from the United States  

Damage claims originating in the United States of America are not covered by your insurance. Your insurer may add a number of other countries to this list.  

Personal benefit  

Have you gained a personal advantage thanks to/as a result of the damage caused? If so, the damage will not be covered by the insurer.  

Accounting/financial statements 

Have you failed to comply with the rules for accounting and annual accounts? Then you will be solely responsible for any resulting damage.  

How can you easily calculate your premium? 

You can easily calculatethe premiumfor your foundation's directors' and officers' liability insurance yourself. All you need to do is look at the legal form and the amount to be insured. You can then use the table to determine your monthly premium.  

Want to take out directors' and officers' liability insurance with Alpina? It's quick and easy. 

Take out your directors' and officers' liability insurance with Alpina now. Request your free quote quickly and easily. You will receive the quote by email within two days. Not sure what to do when applying? Feel freeto contactour customer service team.