LIABILITY BASICS CHECKLIST*
for Nonprofit or Other Organizations in Connecticut
This list is a very simplified
summary of some basic considerations for nonprofit organizations in
Connecticut worried about liability. THIS IS NOT LEGAL ADVICE,
BUT A CAUTIONARY "HEADS UP!" You may also read a longer article HERE.
Applicable Laws - Check with a Lawyer!
- Claims relating to employment laws
(see employer basics checklist)
reporting, filing, withholding, payment obligations no protection! JUST
liability (if you don't pay -- if you don't deliver on what you
liability for negligence (if someone gets hurt because someone did not
observe the appropriate standard of care)
liability - intentional
activity (you're responsible for what happens no matter whose fault)
charitable restrictions, breaching fiduciary duties
- The officers and directors
- The corporation
itself - preserving assets
- Volunteers who get
- Volunteers who
- The public --
people who may get hurt
of Dealing with Liabilities
- Corporate form
(protects against #3; against #4-6 unless directly involved)
limitation provision in certificate authorized by CGS
33-1026(b)(4) (protects only against #7)
indemnification / advancement provisions (in statute; in bylaws;
protects against derivative liability claimed against agents of the
corporation by virtue of status) (See my
- Insurance -
REMEMBER TO INCLUDE COST OF INSURANCE IN GRANT APPLICATIONS
liability or "GCL" (general commercial liability) - careful of
- Directors' and
Officers' Liability ("D&O")- careful of exclusions!
- BONDS (someone
- D's and O's
can have their own umbrella policies that include service on boards
- Make sure all
those who may create liability have appropriate coverage (auto, etc)
- Make sure GCL
/ D&O policies cover injuries TO volunteers BY volunteers or you
- Event insurance
"additional insured" on someone else's policy
- Other people's
insurance (Errors & Omissions coverage of your accountant, etc.)
- Releases and
waivers signed by members of the public, etc. who may be harmed
- Hold Harmless
clause in contract with another "deep pocket"
Management techniques: background checks, best practices, etc.
THIS INFORMATION IS NOT PROVIDED AS LEGAL
ADVICE AND CREATES NO ATTORNEY-CLIENT RELATIONSHIP.
PLEASE CONSULT YOUR OWN LEGAL AND FINANCIAL ADVISORS.