BREAKING DOWN D&O INSURANCE

BREAKINC DOWN D&O INSURANCE D&O INSURANCE I O1 D&O= IT PROTECTS against personal liability in the non-profit's business activities DIRECTORS & OFFICERS SOME POLICIES also protect the company itself IT CAN BE PURCHASED BY For-profits Non-profits Educational institutions ISN'T GENERAL LIABILITY OR UMBRELLA INSURANCE ENOUCH? THESE POLICIES COVER PREMISES, not management liability YOUR DIRECTOR AND OFFICERS can be personally sued D&O INSURANCE provides critical protection and defense costs for them WHAT ARE THE POTENTIALLAWSUITS? DIRECTORS AND OFFICERS CAN BE SUED FOR MANY REASONS SOME EXAMPLES INCLUDE Misrepresentation of company assets Violation of labor/ EEOC claims workplace laws Illegal termination/ Misuse of retaliation Sexual harassment/ hostile environment/ company funds discrimination TYPES OF D&O COVERACE INDEMNITY Pays legal fees and settlements for D&Os Is used when company can't pay these costs REIMBURSEMENT Reimburses company if it does front the legal fees and settlements ENTITY COVERACE Covers the corporation itself as well as the D&Os FINDING THE RICHT POLICY Coverage needs depend on size and protects against all type of business Seek advice from Ensure coverage an experienced D&O broker types of lawsuits PROVIDED BY: GROSS & COMPANY INSURANCE SPECIALIZING IN NONPROFIT INSURANCE WWW.NONPROFITINSURANCE.CO SOURCES: http://www.inc.com/guides/2010/12/how-to-determine-whether-to-insure-directors-and-officers.html http://www.beechercarlson.com/wp-content/uploads/2012/02/DO-policies-articlel pdf