Insurance
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
NAIFA requires all Chapters, at a minimum, to maintain Directors & Officers and General Liability Insurance.
The primary risks that association's face for which they commonly obtain insurance protection are:
Directors & Officers Liability Insurance
Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a organization.
The insurance, which usually protects the organization as well, covers legal fees, settlements, and other costs. D&O insurance is the financial backing for a standard indemnification provision, which holds officers harmless for losses due to their role in the company. Many officers and directors will want a organization to provide both indemnification and D&O insurance.
If your Chapter does not have D&O insurance, or is looking to switch, NAIFA highly encourages Chapters to consider the
ASAE-endorsed D&O liability coverage through AonAffinity Nonprofits.
General Liability Insurance
General liability insurance (GLI) helps protect your business from claims of bodily injury and property damage. These kinds of claims can come up during normal business operations. Without coverage, you’d have to pay for damages out of pocket.
Fidelity Bond Policy
A Fidelity Bond is a way to protect Chapters from dishonest or fraudulent actors. If a Chapter Staff member of Chapter Leader engages in a criminal act and the Chapter suffers a loss, the Chapter's insurance company will reimburse the Chapter. Bonds can be purchased to protect the activities of Chapter Staff and Chapter Leaders. By purchasing a Fidelity Bond, the Chapter is engaging in an industry best practice as a way to provide maximum protection on a cost-effective basis for the Chapter.
Event Cancellation Insurance
Event cancellation insurance protects your event-related revenue or expenses against cancellation due to circumstances beyond your control.
“All Cause Coverage,” meaning that the event insurance policy will cover everything that is not excluded. These circumstances can include, but are not limited to, hurricanes, tornadoes, major winter storms, earthquakes, wildfires, terrorism, labor strikes, non-appearance of key people, and unavailability of the venue due to fires, floods, or power outages.
For more information on association insurance solutions, we recommend you visit the ASAE Business Solutions Insurance Source.
