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Directors' & Officers' Liability Insurance​​

We’re happy to introduce a new ASAE-Endorsed Directors' & Officers' (D&O) Liability Insurance policy form underwritten by Arch Insurance.  Arch, rated A+ (Superior) by A.M. Best Co., has added over a dozen new coverages to the policy and increased the policy limits on a number of existing coverages—without driving up the cost.

ASAE members now have access to one of the most comprehensive D&O policies available on the market today, providing maximum protection to your board members, employees, volunteers and business entity.

(click here to view full infographic)

Not sure your association needs D&O coverage? Learn Why Nonprofits need Directors' & Officers' Liability Insurance. You may also want to read about the limitations of The Volunteer Protection Act.


Coverage Highlights — click each category to learn more information.


NEW EXPANDED LIMITS
Cyber Liability Coverage Extension

Reimburses expenses resulting from network security breaches. Includes up to $100,000 for notification and monitoring costs, as well as public relations firm to aid in image restoration.

 

NEW EXPANDED LIMITS
Fair Labor Standards Act (FLSA) Sublimit

Provides a defense cost sublimit for Wage and Hour claims. Insureds outside of California, with under 15 employees, are eligible for limits as high as $500,000.

 

NEW EXPANDED LIMITS
Workplace Violence Coverage

Provides $250,000 for violence incidents by reimbursing business interruption expenses (lost income and extra expenses); employee expenses (lost wages, counseling and security); and public relations firm expenses to restore the nonprofit’s public image.

 

NEW COVERAGE
Crisis Management Coverage

Provides up to $250,000 for public relation firm and legal fees related to Regulatory crisis, Management crisis, Sexual Abuse allegations, and Fundraising fraud.

 

NEW COVERAGE
Expanded Claim Trigger

Broadened wording to include Insureds once identified in a Wells Notice, subpoena or target letter as a target against whom a formal proceeding may be commenced.

 

NEW COVERAGE
HIPAA Violations

Adds a separate $100,000 sublimit for civil fines and penalties imposed due to violations of the Health Insurance Portability and Accountability Act (HIPAA).

 

ASSOCIATION SPECIFIC COVERAGE
Antitrust Allegation Protection

Among the most expensive claims nonprofit associations face today are violations of the Sherman Act and the Clayton Act. The cost to defend a standard setting or price fixing lawsuit can run into the millions. To learn more about this important coverage read Antitrust and Employment Practices Liability Exposures.

 

ASSOCIATION SPECIFIC COVERAGE
Standard Setting (Certification/Accreditation) Coverage

If you offer certification or accreditation, should one of your members become the target of a negligence or incompetency suit and you’re drawn into the suit, our Standard Setting protection provides you with a legal defense.

Depending on your association’s involvement in standard setting, we 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 separate Standard Setting, Errors and Omissions policy.

 

ASSOCIATION SPECIFIC COVERAGE
Chapter Coverage

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 comprehensive D&O protection at a competitive premium.

 

Employment Practices Liability

A high percentage of D&O claims filed against nonprofits are employment practices related. The ASAE-Endorsed D&O policy includes comprehensive employment practices liability that helps protect you against allegations of discrimination, sexual harassment, wrongful termination and a variety of additional employee suits.

 

Additional coverage features

Some additional coverage features include:

  • Defense outside the limit of liability
  • $100,000 Fiduciary Liability defense cost sublimit
  • Directors, officers, employees, volunteers, trustees and committee members are covered under the definition of Insured
  • Entity coverage for liability incurred by the organization
  • Personal injury and publisher's liability helps protect against suits claiming damages for libel, slander, copyright or trademark infringements
  • Automatic coverage for nonprofit subsidiaries
  • Unlimited Extended Reporting Period (ERP) for past board members

 

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