Do Chapters Need Their Own Liability Insurance?

Do Chapters Need Their Own Liability Insurance?

By: Lou Novick

The operations of a chapter create a need for some measure of liability insurance, but should chapters have their own separate insurance? An understanding of chapter operations and the legal relationship between the national organization and the chapter is essential to planning in this area.

Chapter programming and governance, even on a small scale, may expose both the chapter and, to some extent, the parent organization to legal liability. Does this mean that chapters should carry their own liability insurance? The answer depends on an understanding of chapter operations and the legal relationship between the parent organization and chapter....