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Directors' & Officers' Liability Insurance​​

The ASAE-Endorsed Association Directors' & Officers' (D&O) Liability Insurance provides coverage custo​mized to association exposures at competitive rates. The program helps protect the assets of your association as well as those of your board members.

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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.


Duty-to-Defend Coverage

The program carrier will assign experienced defense counsel for covered claims, even if the allegations are frivolous or false. Claims expenses are paid up front―rather than reimbursing you after the claim is closed.

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.

 

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.

 

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.

 

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.

 

Entity Coverage

D&O-related lawsuits typically name the association as a defendant. Some D&O policies on the market do not provide coverage for liability incurred by the organization. The ASAE program helps to make sure your association is covered.

 

Defense Outside the Limit of Liability

This important feature helps prevent legal defense costs from eroding the limit of liability. If your association's annual revenues are less than $1,000,000 this coverage extension will automatically be added by endorsement at no additional charge. Those applicants with annual revenues greater than $1,000,000 can purchase this option, subject to underwriting approval.

 

$100,000 Fiduciary Liability Sublimit Coverage Extension

Under the Employee Retirement Income Security Act of 1974 (ERISA), employee benefit plan administrators (fiduciaries) may be held personally liable for alleged negligence in handling plan funds. Even if you hire a third party administrator to manage your employees’ monies, if they make a poor investment and a suit is filed and your directors and officers are found responsible for failure of oversight of the plan, their personal assets may be used to satisfy a court settlement.

While typically our competitors’ policies exclude this coverage, the ASAE-Endorsed D&O policy includes a $100,000 sublimit for the defense of such suits, free of charge. An optional $1,000,000 of Fiduciary Liability coverage may be added for judgments and defense costs.

 

Outside Directorship Coverage

This automatic extension provides coverage for Insureds serving on other nonprofit boards as part of their duties.

 

Spousal / Domestic Partner Extension

Expands traditional estates and legal representative coverage to include coverage for a lawful spouse or domestic partner under certain conditions.

 

Additional coverage features

Some additional coverage features include:

  • Directors, officers, employees, volunteers, trustees and committee members are covered under the definition of Insured
  • Personal injury and publisher's liability helps protect against suits claiming damages for libel, slander, copyright or trademark infringements
  • Automatic coverage for nonprofit subsidiaries
  • Expanded claim trigger for subpoenas
  • Unlimited Extended Reporting Period (ERP) for past board members

 

Specimen Policy

If you would like to review a sample of the ASAE-Endorsed Association Directors' and Officers' Liability policy please contact us. The specimen policy does not contain any endorsements or exclusions which may or may not be attached at policy issuance.

 

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*This coverage is not available in New York.



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