[Board] Update on Directors & Officers Liability Insurance renewal

[Frank Warmerdam]

On Thu, May 17, 2012 at 12:27 AM, Jeroen Ticheler
<jeroen.ticheler at geocat.net> wrote:
> I agree, having such insurance for an employee like Tyler was makes sense but I also doubt the value of such insurance when it comes to volunteers from all over the world (including directors and officers).

Folks,

I feel I ought to provide a bit of background.  As directors of a corporation
we are personally liable under US law for some things that the corporation
does.  I'm not clear on the details but it is real.  In the past there have
been some directors who were quite uncomfortable with this liability
exposure - to the point where it presumably played a role in them
ceasing to be a director.

It is very common for corporations (including the non-profit condominium
corporation I was once a director on) to provide D&O insurance to protect
directors and officers from personal liability.

It is *not* primarily about protecting employees though it may play a role
there too - particularly for employees that are officers.

I'm personally happy to live without it if it will be a substantial cost, but
understand it will discourage some people from taking on the role
of director.

Best regards,
-- 
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I set the clouds in motion - turn up   | Frank Warmerdam, warmerdam at pobox.com
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