Unbelievable Claims Impact Nonprofits?
Unbelievable claims actually occur and effect of the all parties involved. While there are laws that allow the victims of false claims to counter-sue, the entire process can take months or even years to complete. False or unbelievable claims have the potential to disproportionately impact non-profits. Furthermore, they often lack the time or money to fight these claims. Here are three examples of unbelievable claims that negatively impacted non-profit organizations.
The Country Club Claim
The Executive Director of a non-profit organization failed not to extend the lease of their land, members of the country club sued the board. At the end of the suit, the non-profit’s directors ended up spending $2 million defending the lawsuit.
How Could Insurance Have Helped?
Insurance would have helped cover the cost of hiring lawyers to defend the non-profit against the claims. This would have allowed the directors to spend more time and money on other tasks instead of spending excessive amounts of money fighting the lawsuit.
The Horse’s Coat
This lawsuit was brought against a non-profit association which registered horses that were thoroughbred. The owner of a new horse was upset because the association refused to register his horse,so he filed a lawsuit. The nonprofit association claimed the coat had excessive markings and did not meet the registration standards.
What Could Insurance Have Done?
The cost to take this case to trial and settle was over $1 million. The right insurance could have spared the non-profit horse registration association from spending a significant sum of money to fight this claim. While the claim may have still ended up in a settlement, insurance would have paid that settlement.
The attorney general sued a non-profit organization. In addition, he claimed the members of the board received more money than was justified for the goals of the organization. However, this lawsuit ended up costing over $5 million to defend.
Insurance Can Help
As with the previous cases, insurance could have spared the non-profit the expense of the trial and helped pay for associated costs. Whether or not a claim against a non-profit is true or not, the cost of fighting these claims was significant. Non-profit Directors & Officers insurance can help cover the cost of defending and settling a claim, allowing the group to concentrate on running their organization. Finally, if you would like information on non-profit insurance, contact the Walterry Insurance Brokers today.