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Nonprofit organizations who forego directors and officers coverage put not only their organizations assets in jeopardy, but also, the personal assets of their directors. Our "A++" rated carrier has come up with innovative coverage features which make purchasing a directors and officers policy a smart choice.

Ineligible Directors and Officers

Please note we cannot offer coverage to the following:

  • Activist or political organizations

  • Adoption agencies

  • Blood Banks

  • Credit Counseling

  • Schools

  • Sorority or Fraternity

  • Unions

Coverage Limits Available for Directors and Officers

  • Directors & Officers Liability limits available up to $5,000,000

  • Employment Practices Liability limits available up to $5,000,000

  • Minimum premiums for a $1,000,000 limit of Directors & Officers Liability and an additional $1,000,000 limit of Employment Practices Liability with $0 retention start at $900

  • Optional coverage include employment practices liability and fiduciary liability

Coverage Features for Directors and Officers Liability

  • Data & Security+ Endorsement - $50,000 sub-limit each for data breach, identity theft, workplace violence and kidnap expenses plus free identity theft services for directors and officers who become victims of identity theft (available in most jurisdictions)

  • Defense outside the limit (does not apply to violations of FLSA)

  • Lifetime occurrence reporting provision

  • Excess Benefit Transaction Excise Tax Coverage - $20,000 sub-limit (available in most jurisdictions)

  • Fair Labor Standard Act (FLSA) - $100,000 sub-limit for defense costs and loss (available to most accounts in most jurisdictions)

  • Punitive damages where insurable by law are included automatically (not available in Alabama or West Virginia)

  • Third party sexual harassment and third party discrimination coverage

  • Coverage for both monetary and non-monetary claims included

  • Defense and settlement provision (hammer clause) – 75/25 in favor of the insured

  • Individual director or officer payment protection– “order of payments”

  • Most favorable venue wording

  • Final adjudication wording

  • Breach of contract coverage

  • Pre/post judgment interest included in the definition of loss

  • Debtor in possession included in the definition of organization

  • Optional fiduciary liability coverage

  • Outside directorship liability coverage

  • Risk Management Services – free human resources consultation helpline service with unlimited calls                                                                          and no time limits plus an online HR resource center

  • Duty to defend with affirmative allocation wording

  • Full prior acts coverage

  • Free and substantially discounted background check services

  • Standard form option (available in most jurisdictions): Combined directors and officers and employment practices liability limit, defense inside the limit, and excludes coverage for Data & Security+, Fair Labor Standards Act and Excess Benefit Transaction Excise Tax.



Claim Examples for Directors and Officers

A club secretary sued the country club's governing board, alleging that the directors and officers were negligent for failing to supervise the club manager, who she claimed sexually harassed her.

The trustees of a charitable organization decided to expand their activities into areas that were not explicitly envisioned by the founders. Soon after, their state's attorney general brought an action against them alleging misuse of funds and property for operating outside their charter, even though no third party raised a complaint.

A YMCA advertised an open position for a camp counselor. The organization received seven applications. Of the seven applicants, one man was not chosen to be interviewed. This applicant alleged he was not interviewed because of his age, and he filed suit against the non profit organization for age discrimination. The organization denied any wrongdoing but settled the case for $15,000 to avoid full litigation costs.

A lawsuit was brought against a non profit board of trustees for failing to supervise the executive director. When they submitted their legal bill to their D&O carrier, they learned for the first time that no payments would be made until a settlement had been reached. Legal costs piled up until a settlement was reached, five years later. The prohibitive costs caused the organization to close its doors forever.

A donor made a large contribution to a non profit. The funds were to be used primarily to aid impoverished children with educational and health care needs. Instead, the non profit, through its executive director and board of trustees, decided that they needed to expand the building and committed a portion of the donation to the building fund. The donor filed suit, alleging misappropriation of funds. The damages included return of the full contribution plus interest. As some of the money was already spent, the non profit would be financially unable to return the entire donation.

You must be an appointed USASIA Insurance Services retailer to use these programs. Quotes obtained via these programs will only be bound IF you are a previously appointed retailer with USASIA. PRIOR TO BINDING, check with your branch to determine any and all applicable taxes and fees. If you need additional pricing considerations on any web quote received via these programs or if your submission is declined, please call your USASIA representative.

Business Team

NonProfit Directors & Officers

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