General Liability Insurance:

Policies that provide basic liability protection. Subject to exclusions and limitations, coverage usually applies for legal responsibility for bodily injury and property damage losses arising from the premises, operations in progress, products and completed operations. Other coverages may be included depending on the particular policy form.

Indemnification:

Where permitted by state law and its bylaws, an organization can promise to reimburse board members for legal costs they incur. Even when a nonprofit corporation has established extensive bylaws consistent with prevailing state law to indemnify its officers, the value of this protection is limited by the financial resources at the organization "s disposal. Paltry financial resources frequently necessitate the purchase of supplemental insurance protection.

Third-party liability of board members:

Board members are considered liable to third parties when: