Twice in two weeks I have reviewed professional liability insurance policies with an exclusion for:

“any claim arising out of or connected with… an entity… in which any insured is a director, officer, partner or principal stockholder.”

So, a consultant who volunteers as a board member for a nonprofit who at the same time acts as an advisor to the entity, is not covered.

Main Point: Read your insurance policies (or have someone else read them) focusing on the exclusions. Consider how each impacts the operation of your business.