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Nonprofit Issues

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February 16-March 15, 2011

February 16, 2011 to March 15, 2011
Lead Stories
Ready Reference
To the Point

Indemnification without insurance seems superfluous, but how about insurance without the bylaw indemnification clause?

In one of your answers you state: "One of the key questions to ask before agreeing to serve on a nonprofit board is whether the organization has an indemnification policy properly spelled out in the bylaws, and whether it has insurance to back it up."

I have been asked to join a board that carries officer and director liability insurance but nowhere in its bylaws (or elsewhere) is it written that the organization will indeed indemnify this same group. Indemnification without insurance seems superfluous, but how about insurance without the bylaw indemnification clause?

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