Chamber of Commerce and Boards of Trade require proper coverage.
Chambers of Commerce and Boards of Trade are nonprofits, and as such, face many of the risks that other nonprofits face. Anyone considering taking a position as a director or officer on a nonprofit board should consider the responsibilities involved. They could be held responsible for:
- Failure to act as stated under a statute. In other words, all required reports and records must be properly kept and maintained. If they aren’t directors and officers could be held liable.
- Noncompliance of the organization. If the nonprofit suffers a loss, an employee claims there is discrimination, or there is a wrongful dismissal of a staff member, directors and officers can be held personally liable.
If the chamber of commerce is unable to cover the costs of the lawsuit, the director could be required to pay out of pocket for legal fees, damages, or any settlement awarded.
It is important to note that neither ignorance nor resignation are reasonable defences. Not only that, but as a chamber of commerce or board of trade director, you could be held responsible for decisions made by past boards, even if you had nothing to do with them, or were not a board member at the time the decision was made.
Having a Directors and Officers Liability insurance policy can protect the individuals who give their time to the important work of running the chamber of commerce.
You can apply for and purchase all of these coverages for your Chamber of Commerce using our simple online application.
There are many other types of insurance which could be relevant to you personally or your nonprofit, make sure to speak with our team to learn more about your unique needs.