Can our board members be personally sued?

Volunteer and paid board members of religious institutions and other nonprofits serve in positions of significant trust and responsibility, charged with decisions that influence and guide the long-term direction and mission of their congregations. These men and women provide high level oversight of the organizational activities and operations, ensuring financial transparency, and protecting the mission. However, these important leadership positions bring with them a number of legal considerations. In some cases, they can face personal liability for decisions and actions relating to financial mismanagement, failure to comply with regulations, or breaches of fiduciary duties. Maintaining adequate Directors & Officers liability coverage limits is especially important for organizations with high-net-worth board members, as their financial visibility and resources can make them more attractive targets for legal claims.