Question: Insurance for Board Members
Should we get insurance for our board members to protect them from being sued for "bad feelings" or are we protected because it is written in our by laws that the board members can not be made financially responsible??
Asked by bookfair
Advice from PTO TodayCraig writes:
Your bylaws won't protect your officers from being sued. There are two things you can do to protect your officers. One is to incorporate. When you incorporate, the so-called "corporate shield" helps protect your officers and board from liability. The other thing you can do is get directors and officers liability insurance. Suits against PTO officers aren't very common, but the insurance will protect you if you want to be as safe as possible.
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