Can a Board of Directors of a Montana nonprofit be sued? Yes! In fact, while lawsuits are more severe, employment practices claims are the most frequent claim against nonprofits. Why? It is free to file an employment-related EEO claim against a business or nonprofit. And, that claim can be made by a volunteer. Even false accusations against a nonprofit still cost money, time and resources to defend.
A recent Montana Nonprofit Association teleconference described these scenarios and discussed the importance of Nonprofit Management Liability Insurance (formerly known as Directors and Officers and Employment Practices Insurance).
Montana Nonprofit Association members are eligible for Nonprofit Management Liability Insurance policies starting at $650 per year. Some smaller nonprofits in specific fields are eligible for rates starting at $375 per year.
To find out more about the Nonprofit Management Liability Insurance and other Montana Nonprofit Association member benefits here.