“We don’t have the money to buy D&O insurance.”

You have been asked to serve on a non-profit Board of Directors. You are honored and you strongly support the non-profit’s mission. You meet with the executive director of the organization and when you ask about Director’s and Officers insurance he replies that money for D&O is simply not in the budget and aasks, besides who would sue?”

My advise — pass on the directorship.

You are putting your families future in the hands of others with no control over the outcome. The legal fees for just one lawsuit might wipe out your net worth. Don’t allow the executive director to skimp on limits as well. Many times lawsuits include many officers and the board and their interests may diverge. Everyone wants and needs independent counsel and the limits are eaten away quickly.

Don’t let the honor of the moment destroy your net worth.