The Importance of Management & Board Liability

Few problems cause more concern for theatre boards than claims related to termination, harassment, or an intervention by a government agency like the CRA.

There are many stories in the news media about toxic work environments, sexual harassment and there has been a material increase in complaints made to provincial human rights commissions.

The costs incurred to defend against these types of allegations is significant and can create tremendous financial hardship to a beloved institution if the proper insurance coverage is not in place.

Compounding the problem are reputational issues which can impact public and private funding as donors and government funders scrutinize the organizations with whom they are publicly associated.

For this reason, it’s imperative that a robust risk and insurance management strategy is part of an organization’s financial strategy for navigating a crisis.

It’s rare to see all three problems line up at the same time at an organization, but it does happen. Canada’s theatrical community erupted in controversy when claims for wrongful dismissal, breach of contract, and fiduciary mismanagement at one of Canada’s theatres hit the nation’s headlines. The financial and emotional costs were substantial.

This type of situation is extremely stressful, but navigating it with an experienced insurance company and broker can help you make decisions with confidence. The staff and volunteer board could be personally liable and certainly their ability to hold on, retain the confidence of their funders, and right the ship could be compromised. Instead, with proper foresight, institutions can embark on a new chapter with a grand new vision and their community will be all the better for it.

We mention this as a cautionary note in preparation for the upcoming webinar in which Steve Beatty, Canada’s most experienced and effective communicator on insurance in the performing arts, will walk members through a game plan on what to look for when purchasing Management & Board Liability for protecting your organization, directors, officers, employees and volunteers. He wants to make sure your questions are answered and give you a good heads-up on what problems can be overcome with the proper coverage, and what areas you should drill down on.

Free Webinar on Management & Board Liability

Learn more about this topic our upcoming free webinar, Management & Board Liability webinar, Thursday, February 6, from 11:00 a.m. — 12:00 p.m. PST. Register for the webinar here.