We are a small 501(c)(3) animal rescue that has applied for and been turned down for insurance. Our board members are concerned about personal liability. What are the risks of our board members being sued individually?
The risk of being sued is significantly greater than the risk of being personally liable (See Ready Reference Page: “Directors Often Fear Risks of Personal Liability”) , but the cost of defending oneself without insurance can be hugely expensive. I would continue to look for coverage. Since your industry seems to be especially litigious, it may be expensive, but it ought to be available someplace. Personally, I would not stay on the board if you couldn’t get it.
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We have hundreds of non-profits as insurance clients as well as some involving animals.
Seems odd they have been turned down unless there is a history of lawsuits against their organization or other legal problems they have had.