Board liability in Amsterdam Volunteer Insurance

Voluntary board member insured under D&O insurance

Starting from January 1, 2023, as a volunteer, when you serve as a director, commissioner, or supervisor of a legal entity (foundation or association) in the municipality of Amsterdam, you are automatically insured under theAmsterdam Volunteer Insurance (AVV)With this extension of the D&O insurance, the financial risks of directors are covered when theypersonalcan be held liable for improper or careless performance of their duties, which may have led to irregularities within the organization.

Consider the following incidents:

• Embezzlement of funds by third parties: Was there insufficient supervision by the board? Then the director will be held liable. Of course, the fraudulent director is not insured!
• Even in the event of bankruptcy, the trustee can hold a director liable
• A driver provided information to someone posing as a bank employee, resulting in €20,000 being unlawfully debited. In this type of fraud, the driver is also held liable.

And also in the following incidents, the board will bepersonalheld liable:

• Failing to keep proper bookkeeping records, or not/delaying the preparation of the annual financial statements
• Failure to meet the requirements set out in a grant
• Making decisions with far-reaching financial consequences without proper preparation, without paying attention to properly documenting agreements made
• Entering into obligations which it is known, or should be known, that the legal entity cannot fulfill
• Neglecting credit monitoring
• Not informing or not informing in a timely manner the supervisory authorities about developments that are important to them
• Acting contrary to the purpose of the legal entity as stated in the articles of association
• Providing financing to third parties, directors, or shareholders without requesting security
• Receive “black” and pay “black” amounts (including wages)

Terms and Conditions

• Drivers are volunteers
• Maximum reimbursed amount per claim and per year is €500,000 for all insured persons together.
• Total balance of the legal entity (=organization) over the past three years has been on average less than €500,000. (Total balance = the sum of all assets (possessions) or liabilities (equity + debts) of the legal entity.)

Which costs are reimbursed?

• Loss of assets in other people’s money
• Costs for defense
• Costs for legal assistance in criminal proceedings or disciplinary proceedings

Read all terms and conditions here.For theAmsterdam Volunteer InsuranceYou do not need to sign up. As a board member, you are automatically insured.

Finally

Above are some examples. Of course, thethe policy conditions(exclusions and limitations) and insurance coverage depends on the circumstances of the case.Here are the current terms and conditions.