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Using Another Business General Liability Insurance?

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Using Another Business General Liability Insurance?

Postby Osmarr » Tue Oct 10, 2017 1:33 pm

I'm involved with a nonprofit organization and I've recently found out that the spouse of one of the board of directors is using the organization's general liability insurance for her own side business. We are tax exempt and her business is unrelated to our mission statement. We are not using any profits from her business in any way, they are not even disclosed. So I have a feeling this is pretty bad, but just how bad? I'm a volunteer here and I believe in the work being done but I'm uncomfortable with any illegal activity. Obviously this was not a decision made by the organization as a whole but just a member or two of the board of directors. What should I do?
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Using Another Business General Liability Insurance?

Postby Arioch » Tue Oct 10, 2017 3:55 pm

Claims can arise from bodily injury or property damages resulting from accidents on your premises or from your products, your operations or advertising for your business. Business liability insurance coverage won?t cover a professional mistake, but professional liability will. It insures against mishaps that may occur as you offer your opinion, solution, service or recommendations in the course of business.
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Joined: Sun Mar 02, 2014 10:22 am

Using Another Business General Liability Insurance?

Postby Kippie » Wed Oct 11, 2017 6:47 am

If a claim was submitted, the Insurance Company would conduct an investigation and deny any benefits that were not properly disclosed.
You could also send an anonymous letter to the board advising of a possible discrepancy.
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Joined: Thu Jan 16, 2014 9:29 pm

Using Another Business General Liability Insurance?

Postby Bakari » Wed Oct 11, 2017 9:54 pm

Thanks to everyone for the input. To clarify, she is "using" it to rent out booths at local events such as street fairs and trade shows. I'm not sure how that's possible either since she is not an "additional named insured" and therefore doesn't have her name anywhere on the policy. No, there has not been any claims submitted to the insurance company on her part. My main concern is in case she did try to file a claim whether this is illegal and if so, who is liable? Would it only fall on her because she tried to pass the policy off as her own, or would the nonprofit also suffer consequences since her husband is on the board and supplied her with the proof of insurance?
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Joined: Thu Jan 16, 2014 2:51 pm

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