Director’s and Officer’s Insurance

Directors and Officers Liability Insurance (D&O) provides financial protection for the Chapter and Board members in the event they are sued in conjunction with the performance of their duties as they relate to the Chapter.  A Board member’s personal assets are protected by the D&O insurance paying the defense costs, damages, settlements and judgments of any covered claims.  It may be difficult to get members to serve on your board without D&O insurance coverage.

D&O Insurance provides coverage for wrongful acts either because your Board did something or didn’t do something in its capacity as a board. D&O would cover-

  • Employment-related issues such as discrimination, harassment, and wrongful termination

  • Failure to provide services

  • Mismanagement of assets

  • Civil rights violations

  • Conflict of interest

  • Fraudulent conduct

  • Personal financial gain

  • Negligence

D&O would not cover bodily injury or property damage, for that a Chapter would purchase general liability insurance.  Most D&O policies include the cost of defending a claim (attorneys' fees, etc.) within the policy limit of liability.  

If your Chapter has employees you should definitely have D&O coverage and it is recommended that all Chapters discuss the need for D&O with an insurance professional who can help them prepare a risk assessment.   If your Chapter has  difficulty purchasing D&O insurance locally please contact the National office.

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