Need some insight on liability.

[Neptune Cat]

Looking for some insight on a very important subject, which was brought up at the monthly meeting last night.

That subject being, Liability.

LSA (Lee Sportsman’s Association is a nonprofit club. It’s my understanding that the club has liability insurance. So what needs to be done to protect the officers from being sued. There is some concern that officers may be held liable if someone were to get injured during a special event being held at the club.

What does your club do to protect it’s officers and chairmen from lawsuits?

Any help would be greatly appreciated.

 

[M1911]

IANAL. It is my understanding, however, that volunteers of a non-profit general have some legal protection, both on the federal level:

http://www.njnonprofits.org/vol_protect_act.html

and in state law (MGL Chapter 231 Section 85k):

No person who serves as a director, officer or trustee of an educational institution which is, or at the time the cause of action arose was, a charitable organization, qualified as a tax-exempt organization under 26 USC 501(c)(3) and who is not compensated for such services, except for reimbursement of out of pocket expenses, shall be liable solely by reason of such services as a director, officer or trustee for any act or omission resulting in damage or injury to another, if such person was acting in good faith and within the scope of his official functions and duties, unless such damage or injury was caused by willful or wanton misconduct. The limitations on liability provided by this section shall not apply to any cause or action arising out of said person’s operation of a motor vehicle.

Full text is here: http://www.mass.gov/legis/laws/mgl/231-85k.htm

 

[Neptune Cat]

Thank you for those links M1911.

I hope this question doesn't sound too stupid but, is a charitable organization the same as a nonprofit organization?

When time permits, I'll have to check to see exactly what our tax status is.

 

[M1911]

Thank you for those links M1911.

I hope this question doesn't sound too stupid but, is a charitable organization the same as a nonprofit organization?

When time permits, I'll have to check to see exactly what our tax status is.

Ah, good question and the answer is unfortunately not necessarily. Not all non-profits are charitable. 501c3 are charitable, but most gun clubs are probably not 501c3s, so that section of the law is probably not helpful.

You can get insurance for the officers and directors, but you'll have to call up an insurance agent to find out how expensive it is.

 

[M1911]

Neptune Cat: If your officers and directors have their own personal umbrella policy, then they may already have coverage.

 

[Neptune Cat]

Neptune Cat: If your officers and directors have their own personal umbrella policy, then they may already have coverage.

I should do some research I think. I don't really know what is meant by an umbrella policy. Is that some sort of personall liability insurance? Is it something I should have? What if I become an officer?

 

[M1911]

I should do some research I think. I don't really know what is meant by an umbrella policy. Is that some sort of personall liability insurance? Is it something I should have? What if I become an officer?

Yes, it is a personal liability policy. It covers you above and beyond your car and home owners insurance. The cost of the umbrella is typically not that much (a few hundred dollars a year), however you are required to have high limits on your car and home owner's policies.

I have an umbrella policy. It is my understanding, however, that it might be something of a double-edged sword. The policy provides some protection, but it also might provide some incentive for a plaintiff's attorney. If you are broke, it is highly unlikely that a personal injury attorney would bother to sue you since there is no pot of gold at the end of the rainbow. On the other hand, a multi-million dollar umbrella policy is a pretty good pot of gold.