This possibly large gap in coverage is why we strongly encourage our customers that sit on boards (for-profit or not-for-profit) to make sure the boards have Directors and Officers Liability (D&O liability). D&O Liability is special coverage designed to protect for wrongful acts or supposed wrongful acts of the board. We recommend this coverage to all boards not only to protect our individual insured’s but to also protect the organization itself. Even if a claim of wrongful acts is frivolous it can still cost the organization thousands or tens of thousands of dollars just to defend itself.
So next board meeting you attend be sure to ask if they have Directors and Officers Liability. If they say no and tell you that you should be fine if you have a personal umbrella be sure to reference this article to help them understand the possible large limitation that a personal umbrella has in covering you as a board member.