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Director's and Officer's Liability
Director's and Officer's insurance indemnifies an organization (sometimes referred to as
the entity) and its officers for allegations for wrongful acts resulting from the management
and governance of an organization. Some types of claims that would fall under this
coverage would be operating outside of the organization bylaws, misappropriated funds,
conflict of interest allegations, and discrimination.
Call 631-259-6157 with questions or send a completed copy of the following application
to kane_michaelk@kibservices.com or by fax 631-204-6630 to begin the marketing a
proper and cost efficient Director's & Officer's Insurance program for your business:
Private Company Director's and Officer's Insurance Application
(Public Company Director's and Officer's Interests should call in advance)
DIRECTOR’S AND OFFICER’S INSURANCE KEY POLICY FEATURES
Entity Coverage
Entity coverage on a Director's and Officer's insurance policy covers an Insured
organization in addition to its Director’s and Officer’s. This is a very important feature to
look for because if you do not have coverage for the entity and the organization in named
in a lawsuit then there is no coverage for the organization itself. The organization must
hire its own attorney and pay any claims levied against it.
Duty to Defend
This term binds the insuring company to defend you in any claim covered under the policy.
It means that the company must hire, manage and pay for any legal counsel used in
defending you in a suit. This can be beneficial because it saves the organization the time
to hire an attorney specialized in the area of the claim and coordinating a legal plan.
Broad Definition of Insured
Director's and Officer's insurance, in its purest form, only extend coverage to the
organizations Director’s and Officer’s. With abroad definition of Insured, you can allow
coverage for staff, committee members, and volunteers.
Defense Cost Outside Policy Limits
In most cases the largest cost of a claim are the costs to hire attorney’s to defend you in a
suit. If your defense costs are outside policy limits, then any expenses incurred to defend
you are paid for in addition to the limits stated on your policy. If you have defense cost
inside policy limits and you have a claim, the cost of defense will reduce the amount of
your policy limits; for example, you have a $1MM-limit policy with defense cost inside
policy limits and you have a claim of $600,000 and defense cost of $500,000. Your policy
will only pay $1MM and you are responsible for the additional $100,000 (since the claim
and defense cost exceeded your $1MM limit).
Employment Practices Liability
Employment Practices Liability Insurance (EPLI) covers an insured person or organization
against allegations of wrongdoing in the course of employment. Wrongful terminations,
unfair hiring/firing practices, and hostile work environments are some examples of claims
that fall under the scope of this coverage. Like General Liability, this insurance can be
written alone, however, it is many times packaged within a director’s and officer’s (D&O)
liability policy to make that policy more comprehensive and more affordable.
Prior Acts Coverage
Prior acts coverage extends coverage to the organization for claims that occurred before
the inception of the policy. This is afforded only if the insured was unaware of the claim at
the time of policy inception. This coverage is important because although a claim may
have happened the insured may not become aware of it until several months later.
Extended Reporting Period
This term comes into play when an agency cancels its coverage or possibly goes out of
business. For a percentage of the premium, the insured can purchase the right to submit
claims for a stated amount of time after the policy has been canceled. This is very
important to any agency that ceases to exist. Even though the board and staff have
stopped making decisions with respect to running the organization, there could still be
some exposure to a claim based upon a previous decision that was made when the
organization was in operation.
the entity) and its officers for allegations for wrongful acts resulting from the management
and governance of an organization. Some types of claims that would fall under this
coverage would be operating outside of the organization bylaws, misappropriated funds,
conflict of interest allegations, and discrimination.
Call 631-259-6157 with questions or send a completed copy of the following application
to kane_michaelk@kibservices.com or by fax 631-204-6630 to begin the marketing a
proper and cost efficient Director's & Officer's Insurance program for your business:
Private Company Director's and Officer's Insurance Application
(Public Company Director's and Officer's Interests should call in advance)
DIRECTOR’S AND OFFICER’S INSURANCE KEY POLICY FEATURES
Entity Coverage
Entity coverage on a Director's and Officer's insurance policy covers an Insured
organization in addition to its Director’s and Officer’s. This is a very important feature to
look for because if you do not have coverage for the entity and the organization in named
in a lawsuit then there is no coverage for the organization itself. The organization must
hire its own attorney and pay any claims levied against it.
Duty to Defend
This term binds the insuring company to defend you in any claim covered under the policy.
It means that the company must hire, manage and pay for any legal counsel used in
defending you in a suit. This can be beneficial because it saves the organization the time
to hire an attorney specialized in the area of the claim and coordinating a legal plan.
Broad Definition of Insured
Director's and Officer's insurance, in its purest form, only extend coverage to the
organizations Director’s and Officer’s. With abroad definition of Insured, you can allow
coverage for staff, committee members, and volunteers.
Defense Cost Outside Policy Limits
In most cases the largest cost of a claim are the costs to hire attorney’s to defend you in a
suit. If your defense costs are outside policy limits, then any expenses incurred to defend
you are paid for in addition to the limits stated on your policy. If you have defense cost
inside policy limits and you have a claim, the cost of defense will reduce the amount of
your policy limits; for example, you have a $1MM-limit policy with defense cost inside
policy limits and you have a claim of $600,000 and defense cost of $500,000. Your policy
will only pay $1MM and you are responsible for the additional $100,000 (since the claim
and defense cost exceeded your $1MM limit).
Employment Practices Liability
Employment Practices Liability Insurance (EPLI) covers an insured person or organization
against allegations of wrongdoing in the course of employment. Wrongful terminations,
unfair hiring/firing practices, and hostile work environments are some examples of claims
that fall under the scope of this coverage. Like General Liability, this insurance can be
written alone, however, it is many times packaged within a director’s and officer’s (D&O)
liability policy to make that policy more comprehensive and more affordable.
Prior Acts Coverage
Prior acts coverage extends coverage to the organization for claims that occurred before
the inception of the policy. This is afforded only if the insured was unaware of the claim at
the time of policy inception. This coverage is important because although a claim may
have happened the insured may not become aware of it until several months later.
Extended Reporting Period
This term comes into play when an agency cancels its coverage or possibly goes out of
business. For a percentage of the premium, the insured can purchase the right to submit
claims for a stated amount of time after the policy has been canceled. This is very
important to any agency that ceases to exist. Even though the board and staff have
stopped making decisions with respect to running the organization, there could still be
some exposure to a claim based upon a previous decision that was made when the
organization was in operation.
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Copyright Kane Insurance Brokerage Services, LLC - All Rights Reserved 2007 / PRIVACY
We are a Socially, Environmentally and Physically Conscience Company
New York, NY Westhampton Beach, NY
212-784-6199 631-259-6157
212-784-6199 631-259-6157