Claims Scenarios

CLAIMS SCENARIOS/EXAMPLES NOT-FOR-PROFIT MANAGEMENT LIABILITY

Schools

• Parent brings a lawsuit on behalf of her autistic child against the insured/school and school board for violations of federal law setting forth standards of appropriate public education, alleging that the school failed to provide an adequate special education program and the required one-on-one teacher time.

Religious Institutions

• Church members bring a lawsuit against insured/church and its board alleging negligent misuse of funds resulting from overpayment of church funds for ground maintenance, and breach of fiduciary duty because board member’s brother was hired over more competent contractor to renovate the church building.

Museums

• Trustees of a museum were sued for negligently handling and damaging works of art, failing to maintain safe premises, failing to keep orderly books and records, and negligently maintaining the museum’s interior

 

Charities and Nonprofits

• The directors of a non-profit corporation were sued for failing to provide access to financial information and for mismanagement of the corporation, which resulted in decreased membership in the organization.
  
  
• Donors bring a lawsuit against the trustees of a charitable organization for allegedly wasting corporate assets by making unnecessary renovations to their headquarters.
  
  
• Directors of a tax-exempt organization who authorized the organization to engage in the sale of a certain product and other “profitable operations” were sued for jeopardizing the organization's tax-exempt status.

   

Foundations

• Donors bring a lawsuit against a non-profit community foundation for failing to properly invest and oversee funds that were donated for the purpose of supporting a community health care center.