Frequently Asked Questions
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GEAPS will provide director and officer liability (D&O) insurance for my chapter. Why do we need that kind of coverage?
Chapter could get sued and chapter leaders could be held personally liable for the decisions they make on behalf of the organizations they serve. Chapters are incorporated and that provides some personal liability protection. There are also volunteer protection laws that offer some protection. D&O insurance fills in any gaps.
Claims against directors and officers can arise from many fronts and the cost to defend those claims, let alone settle them, can be staggering. D&O insurance is triggered by claims arising from wrongful acts. Wrongful acts are, simply, errors in decision-making. Here are some examples of what a D&O claim might look like:
- A member claims you have failed to provide services in accordance with your mission
- An event sponsor claims you have misused funds or mismanaged assets
Chapter leaders need D&O insurance because their personal assets can be at stake. If a chapter leader is personally brought into a lawsuit for a claim stemming from a decision made by the chapter, he/she could face personal liability to pay for legal costs and the potential damages awarded.
Does Directors & Officers Liability Insurance cover all the potential insurance needs of a chapter?
It depends on your chapter’s needs. This coverage protects chapter leaders as they are acting in their roles as leaders. It also provides a legal defense fund. This insurance does NOT cover slips, trips, breaks or falls that could happen at a chapter event. General Liability Insurance would provide coverage in those situations. It is a good business practice to review the risks to your chapter and decide if and when your chapter may need coverage. Intl GEAPS will provide Directors & Officers Liability Insurance only.
Who files my chapter’s tax return?
The Intl GEAPS Office will take care of preparing and filing your chapter’s tax return. Each chapter must submit their Chapter Financial Report by August 1 in order to assist in timely filings.
How long should chapters keep chapter records?
Below is a recommended record retention policy:
- Accounts receivable and payable – 7 Years
- Auditor’s reports, tax returns and work papers – Permanent
- Bank Deposit slips – 7 Years
- Bank Statements, reconciliations – 7 Years
- Budgets – 7 Years
- Cancelled Checks, generally – 7 Years
- Financial Statements (annual) – Permanent
- Annual reports – Permanent
- Articles of Incorporation – Permanent
- Authorization and appropriations for expenditures – 3 Years
- Constitution and bylaws – Permanent
- Contracts – 10 Years
- Minutes – Permanent
- Policies & Procedures – Permanent & updated version kept in electronic files
- Accident Reports – 6 Years
- Insurance Claims – 6 Years
- Insurance Policies – Permanent