Directors' & Officers' Liability Coverage
The ASAE-endorsed Association Directors' & Officers' Liability Coverage delivers these customized coverages at competitive rates. The program is truly priced to save you money - our minimum premium is typically 1/2 the price of the competition!
Please note that this Association Directors' & Officers' (D&O) Liability coverage is tailored to help meet the needs of trade and professional associations. The program offers D&O coverage meant to help protect the assets of your association as well as those of your board members from frivolous lawsuits. Learn more about why nonprofits need Directors' & Officers' Liability coverage.
Learn about the Volunteer Protection Act and why you still need Directors' & Officers' Liability Insurance.
Expands traditional Estates and Legal Representatives coverage to include coverage for a lawful spouse under certain conditions.
$100,000 Fiduciary Liability (ERISA) Sublimit Coverage Extension
Most of our competitor's D&O policies exclude this coverage. The ASAE program provides it automatically and free of charge. We encourage all associations to consider purchasing a stand alone Fiduciary Liability (ERISA) policy as well. (This feature is not available for New York insureds.)
D&O-related lawsuits nearly always name the association itself as a defendant. There are D&O policies that do not provide coverage for liability incurred by the organization. The ASAE program makes sure your association is covered.
A duty-to-defend policy requires The Harford to front CLAIMS EXPENSES in the event of a CLAIM - even if the allegations are groundless or false - rather than reimbursing after the CLAIM is closed. The Hartford is also required to assign experienced, defense counsel.
Defense Outside the Limit of Liability
This important feature prevents defense costs from eroding the limit of liability. This feature is available but subject to underwriter approval.
Note that if your association's annual revenues are less than $1,000,000 this coverage extension will automatically be added by endorsement at no additional premium. Those applicants with annual revenues greater than $1,000,000 can purchase this option, subject to underwriting approval, for an additional premium equal to 10% of the annual D&O premium.
Outside Directorship Coverage
This automatic extension provides coverage for Insureds serving on other nonprofit boards as part of their duties.
Antitrust Allegation Protection
Antitrust related allegations are included in the definition of a wrongful act.
Standard Setting (Certification/ Accreditation) Coverage
This is another unique exposure that associations face. We propose to address it in the following manner:
- If it is determined during the application process that an association is not engaged in a standard setting activity, we will issue the policy as silent on the matter.
- If during the application process it is determined that the given Association is heavily engaged in standard setting activities an exclusion would be attached to the D&O policy and the Association would be strongly advised to purchase a stand alone, Standard Setting, Errors and Omissions (E&O) Policy.
If during the application process it is determined that the given Association is heavily engaged in standard setting activities an exclusion would be attached to the D&O policy and the Association would be strongly advised to purchase a stand alone, Standard Setting, Errors and Omissions (E&O) Policy.
In addition to providing D&O coverage to your association headquarters, we can provide D&O coverage to all of your association's chapters. Within our program, chapters have their own individual policies with broad D&O protection for a competitive premium.
Additional coverage features include:
- Directors, Officers, all Employees, Volunteers, Trustees and Committee Members are covered
- Personal injury and publisher's liability protects against suits claiming damages for libel, slander, copyright or trademark infringements
- Coverage for most nonprofit subsidiaries is automatically included
- Coverage for claims alleging the mismanagement of the association's funds or assets is specified
- Coverage for Employment-related claims (i.e. discrimination, wrongful dismissal, sexual harassment, EEOC proceedings...)
Or, if you prefer, you can download the application.
If you would like to review a sample of the ASAE Endorsed Association Directors' and Officers' (D&O) Liability policy please click here. Note, however, that this specimen policy does not contain any endorsements or exclusions which may or may not be attached at policy issuance.
Or call 800.432.7465 and ask for Eric Johnson ext.: 5374
Or fax 800.701.1982
Please note that the precise coverage afforded is subject to the terms,
conditional, and exclusions of the policy as issued. Any words or terms appearing
bolded and in large case are defined under the policy's definition section.