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!

1. Claims relating to employment laws (see employer basics checklist) 
   
2. Tax reporting, filing, withholding, payment obligations no protection! JUST GOOD PRACTICE
3. Contract liability (if you don't pay -- if you don't deliver on what you promised)
4. Tort liability for negligence (if someone gets hurt because someone did not observe the appropriate standard of care)
5. Tort liability - intentional
   
6. Hazardous activity (you're responsible for what happens no matter whose fault)
7. Violating charitable restrictions, breaching fiduciary duties
   

Who Needs Protection?

• The officers and directors
• The corporation itself - preserving assets
• Volunteers who get hurt
• Volunteers who hurt others
• Employees
• The public -- people who may get hurt

Methods of Dealing with Liabilities

•  Statutory

• Volunteer Protection Act (federal -- but differs in different states)  (discussed in longer liabilities article)
• CGS 52-557m and other statutes
  
  
• Corporate
  
  
• Corporate form (protects against #3; against #4-6 unless directly involved)
• Liability limitation provision in certificate authorized by CGS 33-1026(b)(4) (protects only against #7)
• Corporate indemnification / advancement provisions (in statute; in bylaws; protects against derivative liability claimed against agents of the corporation by virtue of status)  (See my liabilities article!)
  
  
• Insurance  - REMEMBER TO INCLUDE COST OF INSURANCE IN GRANT APPLICATIONS
  
  
• General liability or "GCL" (general commercial liability) - careful of exclusions!
• Workers' compensation
• Directors' and Officers' Liability ("D&O")- careful of exclusions!
• BONDS (someone handling money)
• 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
• Being "additional insured" on someone else's policy
• Other people's insurance (Errors & Omissions coverage of your accountant, etc.)

• Contractual
  
  
• Releases and waivers signed by members of the public, etc. who may be harmed
• Hold Harmless clause in contract with another "deep pocket"
• Risk Management techniques:  background checks, best practices, etc.