Professional liability insurance is one of those forms of business coverage that varies a lot from industry to industry, even when the terms used to describe that coverage overlap. It’s because of the different balances of risks between businesses and nonprofits in various niches. For example, which every nonprofit can benefit from a D&O coverage package, the specific provisions and limitations of a union policy are going to look a lot different from those in a policy offered to a think tank or lobbying firm. Labor union insurance needs to address not only the risks to the organization posed by potential mistakes or bad faith actions by directors and officers, but also the risks to the membership.
Protecting All Your People
Labor union insurance should not only protect you and your key personnel from financial exposure in the event of a mistake in good faith, it should protect the organization and membership from the occasional bad faith actor as well. That means policy limits capable of reflecting the actual risks to your membership, whether you represent a small shop union in a single city or a large corporate membership in locations all around the country. As your union grows and comes to represent larger sections of industry locally and nationally, your needs are bound to grow. Make sure you are assessing your labor union insurance to keep it growing with you.