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Directors Often Fear Risks of Personal Liability-Ready Reference Page

Directors Often Fear Risks of Personal Liability-Ready Reference Page

Board members face potential liability for their own actions in causing injury to others, or in breaching a fiduciary duty to the organization.

Although board members can cut the risk of personal liability by conforming their conduct to the appropriate standards, they cannot control whether or not they will be sued. Therefore, they should be sure that the organization maintains proper insurance to protect them against foreseeable hazards, including general liability coverage, professional liability coverage where appropriate, and directors and officers liability insurance.

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