Not-for-Profit Board Liability Protection

Frequently Asked Questions

What is Not-for-Profit Board Liability Protection?

Not-for-Profit Board Liability Protection is a coverage enhancement available to AIG Private Client Group’s Personal Excess
Liability policyholders. This coverage enhancement helps protect the personal assets of policyholders, and their spouses,
who serve on a not-for-profit organization board.

Who is covered with Not-for-Profit Board Liability Protection?

AIG Private Client Group Personal Excess Liability policyholders, and their spouses, who serve on up to five not-for-profit
organization boards as directors, trustees or officers are covered.

If more than one person is named on the policy (for example, a spouse), does the five-organization limit apply to each person?
No. The limit applies to the policy as a whole. If two people are named on the policy coverage for their participation on
not-for-profit boards the number of boards can not exceed 5 between the people listed on the policy.

Why would Not-for-Profit Board Liability Protection coverage need to be added to a Personal Excess Liability policy?
Personal Excess Liability policies only cover claims due to bodily injury and property damage. Claims associated with
litigation resulting from service on the board of a not-for-profit organization are financial in nature and may stem from
litigation involving wrongful termination, sexual harassment, or discrimination.

Why is Not-for-Profit Board Liability Protection coverage needed on top of a not-for-profit organization’s existing
management liability policy?
Not-for-profit organizations typically operate on tight budgets and they often carry only the minimum amount of liability
insurance. When the limits on the organizations liability insurance are exhausted board members are personally liable for
the judgment amount in excess of the exhausted coverage - putting personal assets at risk.

What types of litigation are covered with Not-for-Profit Board Liability Protection?
There are many types of claims brought against not-for-profit board members. A few of the common types of litigation that
would be covered include:
• Poor management practices • Wrongful termination • Misrepresentations • Copyright infringement
• Discrimination (sex, age, race) • Harassment • Libel and slander • Tax law violations

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Frequently Asked Questions (continued)

What is a not-for-profit organization?

A not-for-profit organization is one that qualifies for tax-exempt status under the Internal Revenue Code section 501(c) (3), (4),
or (7). This includes religious organizations (churches and synagogues); cultural organizations (opera, ballet, and performing
arts companies); youth organizations; museums; civic and community organizations; community clubs (country clubs, hobby
clubs); and more.

How do I determine whether an organization is considered a not-for-profit?

There are approximately 1.5 million not-for-profit organizations operating in the US. There are a number of web sites that
provide information about whether an organization has not-for-profit status, including:
www.charitywatch.org www.charitynavigator.org www.guidestar.com www.irs.gov/charities/index.html
(Note: some sites are available by subscription only)

How is the coverage obtained?

Not-for-Profit Board Liability Protection is available to AIG Private Client Group’s Personal Excess Liability policyholders. To
request Personal Excess Liability coverage and the Not-for-Profit Liability Protection coverage enhancement please contact
your local insurance broker.

How do I report a claim?

AIG Private Client Group Claims specialists are available 24 hours a day, seven days a week to help clients in the event
of a loss.

To report a claim, please call (888) 760-9195, or fax us at (866) 947-1512.

Coverage provided by the member companies of the American International Group, Inc. (AIG). The descriptions contained herein are summaries only. Please see actual policy for full terms, conditions and exclusions.
All submissions are subject to underwriting guidelines. Coverage may not be available in all jurisdictions. Non-insurance products may be provided through independent third parties.

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