VFW Post Insurance: Is Your Post Incorporated?
Wednesday, October 24, 2007 at 02:08 PM
by washington
It was a typical day... Jim returned from work and started sifting through the mail. There was the usual bills and junk mail, but something else; an envelope from a law firm. He quickly recognized it was not his lawyer's office. With great curiosity Jim opened the letter, read it, and sat in astonishment and confusion. His wife Mary approached and asked what was the matter.“Do you remember that incident at the Post last year when Paul’s son drank too much?”
Mary nodded, everyone remembered that night. The barely 21 year old had drunk too much and gotten into an accident a few blocks from the Post injuring both passengers in another vehicle. And even though no one wanted to admit it, it was obvious he had been over-served.
“Well, a lawsuit has been filed against the Post for negligence… and against the members of the Post… that means us!”
“What?” Mary exclaimed, “how could there be a lawsuit against us?”
“The letter says something about ‘incorporation’…I guess the Post isn’t incorporated. Does that make a difference? I’m going to call our lawyer to figure out what’s going on.”
After Jim spoke with his lawyer, he had his answer: without incorporation, there was no legal difference between the Post and its membership. When the judgment exceeded the Post’s liability insurance, the members became liable; Jim and all the other members were required to pay $1000 out of pocket to cover the expenses.
Incorporating your Post can be an effective method of protecting your members’ assets, but the decision to incorporate your Post should be made only after consulting with your legal counsel to determine if it’s the best option for your Post. Another way to insulate your members from costly suits or insurance claims is to make sure that that you have adequate insurance coverage. Common sources of claims, situations involving liquor are protected by liquor liability insurance.
Find comprehensive insurance for VFW Posts at a competitive price. Insurance policies tailored to protect your Post's unique property and liability exposures including its volunteers, members, Auxiliary and home associations.
Coverage includes:
- Property Coverage for Post homes and contents
- Commercial Liability
- Liquor Liability (Dram Shop)
- Auto Liability
- Workers' Compensation
- Employee Dishonesty Bonds
- Special Events Coverage
- Umbrella Liability
- Tax and Gambling Bonds
Visit VFW Insurance to learn more about the great offerings.
