Twice in two weeks I have reviewed professional liability insurance policies with an exclusion for:
"any claim arising out of or connected with... an entity... in which any insured is a director, officer, partner or principal stockholder."
So, a consultant who volunteers as a board member for a nonprofit who at the same time acts as an advisor to the entity, is not covered.
Main Point: Read your insurance policies (or have someone else read them) focusing on the exclusions. Consider how each impacts the operation of your business.
"any claim arising out of or connected with... an entity... in which any insured is a director, officer, partner or principal stockholder."
So, a consultant who volunteers as a board member for a nonprofit who at the same time acts as an advisor to the entity, is not covered.
Main Point: Read your insurance policies (or have someone else read them) focusing on the exclusions. Consider how each impacts the operation of your business.
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