You are, or have volunteered to be, a Trustee of your school. You have your own good reasons for taking on this role. Perhaps you want to “give back;” you care about the kids; or your personal vision aligns with the school’s.
With this important role come not only rewards and important responsibilities, but also certain risks of which you must be mindful. There are four core elements involved to managing your risk as a Trustee and being an effective member of the Board. These include 1) your actions as a Trustee; 2) the school’s administrative leadership; 3) the legal landscape; and 4) insurance to protect you against professional and personal liability exposures.
1. Your actions as a Trustee. You must be:
- qualified and properly trained on your duties and responsibilities as a Board member (with orientation);
- knowledgeable of your professional and personal liability and what actions of yours might lead to a suit against you;
- aware of any statutory regulations that might apply to you in your role as Trustee; and
- comfortable that you are covered (insured) for all your activities as a Trustee.
2. School Leadership. You, as a Board member, must know that:
- the administration has and is following the Board-approved strategic plan and strategic financial plan, which informs the administration’s key operational activities;
- that any strategic decisions not already approved by the Board will be brought to the Trustees for discussion before implementation allowing for examination of possible long-term consequences—good or bad, expected or unexpected;
- the data that the Board and leadership team rely on to make critical decisions is reliable; and
- there is a formal risk-assessment and management function in place and practiced.
3. Legal Liability. You’ll want to know what claims can be brought against you and what they look like. These can include:
- negligence or malfeasance;
- wrongful termination of the Head;
- discrimination;
- breach of fiduciary duties;
- failure to meet statutory obligations; and
- any reason the plaintiff wishes.
4. Insurance. You must know that key coverage protections exist—your school's CFO or broker can confirm these for you. They should be a part of your school’s Directors and Officers (D&O) insurance policy, including:
- educational practices;
- employment practices;
- third-party claims; and
- coverage that extends post-service.
Additionally, know whether there is an indemnification clause in the school's bylaws to protect you.
Be mindful of these areas when it comes to protecting your school so you continue to be effective in your role on the Board.
Additional ISM Resources:
The Source for Trustees Vol. 16 No. 5 Why You Can’t Afford to Be Without D&O Insurance
The Source for Trustees Vol. 15 No. 1 Don’t Let Your D&O Lapse!
ISM Insurance Directors & Officers for Private Schools
Additional ISM resources for members:
I&P Vol. 41 No. 4 Risk Management Assessment: Reduce Your School’s Exposure
I&P Vol. 41 No. 7 Selecting Your Insurance Broker
