Directors & Officers Errors & Omissions Liability Insurance
“It’s better to evaluate your coverage in the boardroom, rather than in the courtroom.”
Clubs, associations and non-profits are not immune from lawsuits. Almost any day-to-day decision by anyone in a non-profit organization can trigger legal action. Such litigation not only can hurt the organization financially, but can also threaten the personal assets of the organization’s members, trustees and executives. Such organizations require special, enhanced programs, available at premiums.
This specially designed Directors & Officers Policy is uniquely qualified to fill a wide range of special insurance needs for the non-profit sector. We offers programs specifically designed for community service organizations, such as libraries, civic clubs, girls and boys clubs, and scout groups. These programs can also be provided for any other non-profit organization. The policies cover all directors, officers and employees, including staff, volunteers and committee members (past, present and future). Our non-profit D&O product offers full employment practices coverage and pays legal expenses as they are incurred.
Case in Point:
The trustees of a charitable organization decide to expand its activities into areas that were not explicitly envisioned by the founders. Soon after, the state’s Attorney General brings an action against the trustees alleging misuse of funds and property for operating outside the founding charter – even though no third party raised a complaint.
Directors and Officers (D&O)
Company directors & officers insurance (D&O) operate in an extremely complex and difficult business, legal and regulatory environment. While you cannot avoid the challenges and risk exposures that arise, you can take steps to protect your own personal assets. Directors & Officers Liability insurance protects the personal assets of corporate directors and officers, along with their spouses, in the event they are personally sued by vendors, employees, competitors, investors or other unknown parties for actual or alleged wrongful acts. Directors & Officers insurance is the financial backing for a standard indemnification provision, which holds officers harmless for losses due to their role in the company.
Errors & Omissions Insurance
Errors & Omissions Insurance also known as (E&O or Professional Liability Insurance) can be an integral part of protecting your business. Accusations of negligence, or the failure to perform your professional services are examples of things that any professional business can be sued for, even if it has not made a mistake. Errors and Omissions Insurance protects the business and employees if they are sued by clients for any actual or alleged negligent act.
You should consider Errors & Omissions Insurance if your business:
- Required by Clients to have E&O insurance
- Regularly gives advice
- Provides any professional service.
Consider the following protection features:
National Admitted A+ Rated Insurance Company
Coverage for all
past, present, and future directors, officers, trustees and employees, including staff, volunteers, and committee members.
Entity coverage built-in.
Our policy includes coverage for claims made against the organization itself, even if no directors or officers are named in the claim.
Employment Practices Liability coverage.
Our policy helps protect all insured persons of the organization against damages from claims for wrongful termination, sexual harassment, discrimination, unfair hiring/firing practices, mental anguish, and emotional distress.
Duty to Defend.
Committed to the fair resolution of claims, we will appoint highly qualified and experienced counsel to defend covered claims.
Defense expenses outside the limits of liability.
Defense expenses incurred will not diminish the limit available under the policy.
Prior acts coverage.
Our policy has no “retro-dates” that would limit the coverage for prior wrongful acts.
Broad extended reporting period option.
The policy allows insureds to elect an extended reporting period option, even when the insured cancels or non-renews coverage (commonly referred to as bilateral discovery).
Coverage available for breach of employee contract claims
Allen Financial offers three-year prepaid policies with a premium discount or a three-year annual installment option.
$0 retention – Available.
Primary limits up to $10,000,000
The average cost to defend non-profit claims that are closed by litigation is $147,274.(1996/1997 Watson Wyatt Nonprofit Organization Directors& Officers Liability Survey Report.)
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