Coverage Summary:
The key distinction with directors and officers liability is that it is intended to cover wrongful acts that are "intentional" as opposed to "negligent." This is because directors and officers insurance is designed to cover actions and decisions of the board of directors. These actions may be in error and wrong, but they are, nonetheless, "intentional" acts. Most other types of insurance do not cover "intentional" acts. Among the items a good directors and officers policy should include is broad coverage for all types of employment related actions, including wrongful termination, harassment, discrimination, failure to hire, etc. It should also pay defense costs as they are incurred, not on a reimbursement basis.
Specific Features:
- Written on an “Event-Trigger” form NIAC DOET – not a Claims-Made coverage
- Full prior acts coverage available
- Broad employment practices liability coverage including harassment and discrimination
- Broad definition of insured, including the nonprofit itself (entity coverage)
- "Pay on behalf of" and duty to defend coverage
- Defense outside the policy limits
- Zero policy deductible
- Free Employee Handbook Review
- $250,000 defense-only coverage provided for breach of contract and wage and hour claims
