I have been asked to serve on the board of a local Chamber of Commerce. Should I be concerned that it does not have directors’ and officers’ insurance?
Yes. Although directors are seldom found personally liable in litigation, they are infrequently, but sometimes sued individually and face serious legal bills. In most cases they settle the claims. (See Ready Reference Page: Directors Often Fear Risks of Personal Liability.”) Be sure you are adequately insured, both for general liability and D & O claims. If you aren’t, the corporation may not have the resources to indemnify you and pay the bills. Also be sure the D & O policy covers employment disputes, which produce the largest single type of claims under D & O policies.