Coverage Features

The Council on Foundations endorsed Directors' and Officers' Liability Insurance Program helps provide your organization with the protection it needs.

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.

SPECIAL COUNCIL ON FOUNDATIONS' ENDORSED D&O PROGRAM COVERAGE FEATURE
Defense Cost Coverage for alleged violations of IRS tax code provisions. (Subject to state law) This provision will help protect your foundation from allegations of self-dealing, jeopardizing investments and taxable expenditures.

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.

$1,000,000 Limit
Higher limits may be available

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
This important feature prevents defense costs from eroding the limit of liability. All foundations, subject to a claims review, are eligible to receive this important coverage feature free of charge.

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 Council on Foundations 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 Council on Foundations 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:

Title VII of the Civil Rights Act of 1964
The Americans with Disabilities Act of 1990
The Age Discrimination Act of 1967
The Equal Pay Act of 1963
Sections 503 and 504 of the Rehabilitation Act of 1974

Outside Directorship Coverage
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.

Directors, Officers, all Employees, Volunteers, Trustees and Committee Members are covered along with most nonprofit subsidiaries
Personal injury and publisher's liability protects against suits claiming damages for libel, slander, copyright or trademark infringements
Coverage for claims alleging the mismanagement of the nonprofit's non-ERISA funds or assets is specified

Broad Coverage
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.

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!

* 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.

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