Details:
What's covered
Limits & lawyers
Costs you retain
Significant exclusions
Tip: Find out who is protected by your D&O policy, and remember that rank-and-file employees and volunteers may be exposed to risk.
Directors' and officers' liability insurance protects an organization and its agents against civil liability for "wrongful acts".
Church organizations generally purchase D&O insurance to protect clergy, church officers, vestry and chapter members in their actions on behalf of the church.
The coverage also applies to boards and leaders of other church-related institutions.
Most D&O policies designed for not-for-profit institutions protect:
- The corporate entity, both in its own right, and directors and officers indemnified in its by-laws.
- Its directors and officers, as defined within the policy.
Some newer policies also cover employees and volunteers. In all cases, coverage for individuals applies only to their actions on behalf of the organization.
The directors &officers policy available through Church Insurance also provides coverage for employment practices liability. This coverage is typically written under a separate policy and includes protection against claims or suits involving sexual harassment, discrimination and wrongful termination.