Indemnification
Full definition — Indemnification is a legal protection, typically outlined in the school's bylaws or articles of incorporation, that shields board members from personal liability for lawsuits, legal costs, or judgments arising from their service on the board. Indemnification generally applies only when the board member acted in good faith, within the scope of their duties, and without gross negligence or willful misconduct. Many charter schools also carry Directors and Officers (D&O) insurance to supplement indemnification provisions.
Why It Matters
Board members volunteer their time and should not face personal financial ruin for good-faith decisions. Understanding indemnification provisions and ensuring the school carries adequate D&O insurance helps attract and retain qualified board members.
Related Terms
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