Office of Treasury Operations, Risk Management

Directors and Officers

Employees serving on an outside board in an executive capacity

The purpose of this section is to explain how University of Illinois insurance may or may not respond in situations when a employee serves in a position of leadership (board member, director, trustee, or trustee emeritus) on a board of an outside entity.

  • Employees who do this are urged to find out what insurance protection the outside entity has for insuring the liability that comes from serving on a board.
  • The outside entity’s insurance will always be the primary source of your insurance protection.
  • Should you serve on a for-profit entity’s board their insurance will be your only source of insurance protection.

Should you serve on a non-profit (501 c) entity’s board, you must do so with the encouragement, support, and direction of your unit executive(s). Under these circumstances the University of Illinois will provide you—not the non-profit entity—insurance protection if the non-profit does not have insurance to protect you and/or the financial wherewithal to defend you. The University of Illinois would not protect you if the non-profit entity itself brought a suit against you.

Example scenarios

  1. The University of Illinois would not provide you any insurance protection for service on your church’s board.
  2. The University of Illinois would not provide you any insurance protection if you served on a for-profit board.
  3. The University of Illinois would provide you insurance protection (excess of any other insurance available to you if:
    a) you asked and received permission from your unit executive to serve on a non-profit board, and
    b) it is related to the University of Illinois' mission and/or serves its interests—that is, the NACUBO board.