Director and Officer insurance for homeschool groups

A support group leader in Alaska asks about Director and Officer (D&O) insurance.

Dear Carol,
I got to your website from an Old Schoolhouse article about insurance. (Read it here)

We are a support group in Alaska and we serve 90-120 families. We would like D&O insurance. We are covered for liability on church’s policy, but not D&O at this point. I have talked with an attorney at HSLDA and because we are
1. a large group
2. high turnover (military community)
3. have at least once a month field trips
we think it is in our best interest to have D&O. I would love to hear your thoughts about other support groups getting D&O and if we should pursue it through the church or through another agent.
Thanks,
Kelly F in AK

Kelley,
I do not usually see a need for a typical homeschool group to need D&O insurance. I was interviewed by Home Education magazine about insurance for homeschool groups. You can read it here: HEM Interview with Carol Topp

Here’s what I said about D&O insurance:

*Director and Officer insurance: This is to protect the leaders from being personally sued for liability. Insurance agents have told me that these policies start at $1,000 per year. They explained it is expensive because of the litigious society that exists in America today. Also D&O policies cover litigation over employee issues such as sexual harassment, wrongful termination, etc. Most homeschool organizations do not have employees, so this type of insurance may not be necessary. However, I have known of potential board members that will not serve on a board without D&O liability insurance. They are usually high net worth individuals and are concerned about personal liability.

By all means purchase D&O insurance if you feel there is a risk that needs to be managed. In addition, I recommend that a homeschool group consider nonprofit incorporation as a means to offer liability protection for their leaders and officers. It is not the same as an insurance policy, but it does offer limited liability protection. Read this article I wrote to learn more about nonprofit incorporation.
Seven Great Reasons to Incorporate

I hope this helps!

Carol Topp, CPA