Coverage Features
The United Way endorsed Directors' and Officers' Liability Insurance Program helps provide your organization with the protection it needs. The program is also priced to save you money - our minimum premium is typically 1/2 the price of the competition! Learn more about why nonprofits need Directors' & Officers' Liability coverage. Learn about the Volunteer Protection Act and why you still need Directors' & Officers' Liability Insurance. Mismanagement Coverage CLAIMS alleging the mismanagement of (non-ERISA) funds and other alleged negligent acts are covered. Free, online program helps you manage risks and prevent losses You'll get access to an exclusive online program - HartfordHelp.com. It's a one-stop, comprehensive resource for information and training on Employment Practices Liability (EPL) loss prevention. It offers convenient web-based EPL training for your staff, HR forms and sample workplace policies, a place to upload your employee handbook to the site for easy employee access, optional subscriptions to e-newsletters authored by risk management experts, and more! $1,000,000 Limit Higher limits may be available Coverage for Excess Benefits Transaction Penalties The 1996 Tax Payers Bill of Rights II Act exposes nonprofit organizations to an excise tax equal to 10% of the excess benefit. An "excess benefits transaction" is one in which the nonprofit organization provides an economic benefit to the "disqualified person" in excess of the fair market value of the goods or services that the organization receives in return.* Duty-to-Defend A duty-to-defend policy requires The Hartford to front CLAIMS EXPENSES - even if the allegations are groundless or false - rather than reimbursing after the CLAIM is closed. Aon Association Services, a division of Affinity Insurance Services, Inc., is also required to assign experienced defense counsel. Defense Outside the Limit of Liability Option This important feature prevents defense costs from eroding your agency's assigned limit of liability. This feature is available but subject to underwriting approval. Spousal Coverage Recently, plaintiffs in lawsuits alleging director and officer misconduct have been naming spouses as defendants, in addition to directors and officers. As a result, the United Way Endorsed D&O Program now includes a spousal endorsement at no additional cost. $100,000 Fiduciary Liability (ERISA) Sublimit Coverage Extension Most of our competitors' Directors' & Officers' (D&O) policies exclude this coverage. The United Way endorsed program provides it automatically and free of charge. We encourage all nonprofits to consider purchasing a stand-alone Fiduciary Liability (ERISA) policy as well. Please ask us for more details. * Employment Practices Liability Coverage In addition to sexual harassment and discrimination, the program specifies coverage for any alleged violations of the following statues:
This important feature extends the protection of the policy to those insured directors, officers, employees or volunteers who have been formally asked by your organization to serve as a director or officer at another nonprofit organization. Entity Coverage D&O-related lawsuits nearly always name the nonprofit itself as a defendant.
The policy specifies any past, present or future director, officer, trustee, employee, volunteer or committee member as an INSURED. Personal Injury and Publisher's Liability Protection CLAIMS alleging libel, slander, copyright or trademark infringements are covered. * These features are not available for New York insureds. If you would like to review a sample of the Directors' and Officers' (D&O) Liability policy please click here. Note, however, that this specimen policy does not contain any endorsements or exclusions which may or may not be attached at policy issuance. NY residents, click here Please note that the precise coverage afforded is subject to the terms, conditional, and exclusions of the policy as issued. Any words or terms appearing bolded and in large case are defined under the policy's definition section. Questions, Comments and Feedback
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