Policy

Boards must have a policy basis for a number of reasons:

1. Policies ensures that the organization complies with relevant laws.
2. Policies help officers and staff to make difficult decisions quickly and easily.
3. Policies give people organizational protection from individual liability.
4. Policies cover all normal incidents and responsibilities so that they are handled properly and consistently.
5. Policies assign responsibility and lines of accountability.
6. Policies provide for review of practice.
7. Policies save board members and employees from seeking case-by-case approvals from the board.
8. Policies help protect the orgaization from litigation. Courts can interpret the lack of policy in key areas to be negligence if somebody tries to sue your organization. Insurance won’t necessarily cover the board for negligence in matters that can be reasonably expected of it. Consequently, you can jeopardize your insurance cover if you haven't bothered to put adequate policies in place.