Non-Profit Organization

[lifeisgood]

I am interested in obtaining a bond for our company which specializes in Home Health Care/Medicaid Provider. The only problem is that we are a non-profit organization so there are no real owners - can we substitute having an owner sign with someone with signatory capacity for the indemnity agreement?

[Surety Wizard]

You may have someone from the Board of Directors personally indemnify for the bond if the Surety Company will consent. This will mean that whomever signs for the bond will be responsible financially for repayment of any claims on the bond. I suggest careful consideration of doing this especially if there could be a large claim.

[h2o]

Our officers are elected each year. So what if the President and Vice-President were to indemnify, but then next year there was a different President and VP?

[lifeisgood]

If the President and VP are indemnified and at some point leave the company and are replaced - the new President and VP will have to be indemnified as well.

[h2o]

Once the new President and VP indemnify, will the old President and VP be liable for any losses from claims that occur afterwards?