The number one question asked by people who are interested in serving on a board is “Does this group have board insurance?” That is an excellent question but not what the person really wants to know. What they want to know is – could anything bad happen to me because I am serving on the board?
Often a person will assume that if there is insurance then there is nothing to worry about. What would be more useful to a potential board member is an understanding of their duties and responsibilities and what the insurance actually covers. Ask your insurance broker to provide examples of the situations the insurance covers and any examples of situations where the directors insurance would not be available.