[ SHOWGSD-L ] board insurance question
- From: ELG440@xxxxxxx
- To: showgsd-l@xxxxxxxxxxxxx
- Date: Fri, 26 Oct 2007 17:33:59 EDT
In a message dated 10/26/07 1:53:57 PM Pacific Daylight Time,
Erynbrook1@xxxxxxx writes:
Doesn't insurance protect individual members of a clubs board?
I used to sell insurance for Northwestern Mutual. That was between teaching
school, and selling jewelry on the road, and before becoming a lawyer.
Errors and Omission insurance covers negligence. No insurance policy covers
the intentional or illegal act of an individual. If someone steals from the
club, the club is covered to recover the loss, but the individual, even if an
officer is not covered for his or her acts.
It is the same with automobile insurance. If you cause an injury through
negligence, you are covered. If you go out and intentionally run someone down,
you won't be covered.
The current law suit is against the club for the actions of implementing the
motions of the board, and all board members are covered for those actions.
It also states some intentional acts by four people, those acts are not covered
by insurance. Usually what happens is the insurance company will provide a
defense, with "a reservation of rights." What that means is they will defend,
but when the dust clears, if there were intentional acts, or acts outside the
duty of the board, then those individuals responsible will have to pay
damages, and also reimburse the insurance company for whatever they spend
defending them.
That is way agreeing to indemnify the individuals may cause the insurance
company to consider carefully how they will approach this matter.
When you by insurance, you not only pay for coverage for any damages, but
also the cost of defending against the claims. When there are both negligence
and intentional acts, they are defended, and then at the end, determined if
someone is held liable for damages other than the carrier.
The club members never have any liability for acts of the board, and unless
they act as individuals in causing liability they have no exposure to
damages. I a member were to shoot a judge at the National, (something I heard
was
possible a few years ago), then they would be liable and our insurance would
not cover them. It would, however, cover the injured party.
I hope that is clear.
Evan_ Asgard German Shepherds_ (http://www.asgardgsd.com/)
http://www.asgardgsd.com/
Where Type Movement and Temperament come together
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