ORIGINAL: John Casey

Is the AMA wasting $$$ on liability insurance for chartered club officers?

From the AMA minutes:
MOTION IX: Moved by D. Mathewson (II), seconded by T. Stillman (V) to accept the recommendation of the Insurance Committee to approach our insurance company to modify language in the Westchester General Liability Policy to provide primary general liability protection to officers of AMA Chartered Clubs in good standing for vicarious liability for the actions of others.
*Note: This additional coverage is for the five officers listed on the club officer sheet, i.e. President, Vice President, Secretary, Treasurer and Safety Officer (coordinator), this is assuming that one of the above officers is also named as the contact person for that club.
MOTION passed: 12-Y; 1-Abstention (NAA)


Most states already have laws protecting the "officers" for non- profit corporations similar to this:


7231.5. (a) Except as provided in Section 7233 or 7236, there is no
monetary liability on the part of, and no cause of action for
damages shall arise against, any volunteer director or volunteer
executive officer of a nonprofit corporation subject to this part
based upon any alleged failure to discharge the person's duties as a
director or officer if the duties are performed in a manner that
meets all of the following criteria:
(1) The duties are performed in good faith.
(2) The duties are performed in a manner such director or officer
believes to be in the best interests of the corporation.
(3) The duties are performed with such care, including reasonable
inquiry, as an ordinarily prudent person in a like position would use
under similar circumstances.
(b) "Volunteer" means the rendering of services without
compensation. "Compensation" means remuneration whether by way of
salary, fee, or other consideration for services rendered. However,
the payment of per diem, mileage, or other reimbursement expenses to
a director or executive officer does not affect that person's status
as a volunteer within the meaning of this section.
(c) "Executive officer" means the president, vice president,
secretary, or treasurer of a corporation or other individual serving
in like capacity who assists in establishing the policy of the
corporation.

Nothing is going to protect club officers found to be operating in "bad faith" so why put good money
is a additional insurance policy that will do no good ?
If they are found not to be operating things "in good faith"
no insurance policy is going to cover them.So why is the AMA wasting money on this???