Schweickert — D & O Liability Coverage

Directors & Officers Liability Insurance and Employment Practices Liability Insurance for Nonprofit Arts Organizations

Nonprofit organizations need broad directors and officers liability coverage at an affordable price. Schweickert & Company delivers. We make it easy for nonprofit groups to purchase D&O protection with a clear, concise policy that covers all of the bases.

Until recently, the majority of nonprofit organizations were not buying D&O coverage, mainly for these reasons:
	They had difficulty understanding the exposure or were advised it wasn’t needed;
	They assumed the coverage was too expensive because of the price associated with corporate D&O;
	They thought that they could not be subjected to multimillion dollar claims.

Even today, some nonprofits falsely believe they’re fully covered when they’re not. Here are some of the common misconceptions:
	A nonprofit organization is well-protected with a traditional corporate D&O policy. *Probably not.* Policies that are not written specifically for nonprofits usually have too many exclusions and limitations to provide the necessary protection.
	Comprehensive General Liability insurance fully covers D&O Claims. Definitely not. Comprehensive General Liability insurance provides limited coverage in the typical D&O claims situation. For example, directors and trustees usually are not afforded coverage and many insurance companies are excluding all employment related claims.
	State-enacted legislation offers complete protection from D&O claims. NOT really. These statutes provide only limited protection on a state level and NO protection for violations of federal law.

Highlights of the program
	Policy covers all directors, trustees, officers, employees, committee members and volunteers of the organization.
	Entity coverage is provided. The policy is triggered whether the individual or the entity is named in a lawsuit. This is a departure from a traditional D&O policy where only the named individuals are reimbursed, and not the entity itself.
	Policy contains a “Duty To Defend” clause. This is not a standard practice by most other D&O carriers. The defense is afforded the insured even if the allegations of the claim are groundless, false or fraudulent.
	Policy encompasses the important employment related matters, even claims by key officers and directors of the organization.
	Automatic coverage for controlled non-profit subsidiaries is provided.
	The policy provides “full prior acts coverage” except where the insured has knowledge of a claim situation at the time the application is submitted.
	The individual insureds are afforded protection even in circumstances where another insured’s conduct may fall outside the policy coverage. For example, no insured will lose coverage because of any dishonest, fraudulent or criminal acts unless that insured participated in the wrongdoing. Similarly, if there is a misrepresentation in the policy application only the organization, it's subsidiaries and those individuals with knowledge of the matter misrepresented are at risk of losing coverage.
	The policy includes a free 90-day extension period if the Insurer cancels or non-renews the policy. In addition, an optional 12-month extension is available, whether the Insurer or Insured cancels or non-renews the policy. This optional extension period would be in addition to the free 90-day extension if applicable.
	There is no exclusion for “Insured Persons vs. Insured Persons” claims by directors and key officers as well as other employees or volunteers are covered.
	Defense costs are covered over and above the policy limits.

SCHWEICKERT & COMPANY'S Nonprofit D&O Policy even defends against claims brought by:
	Donors who feel that their contributions have not been used to further the expressed aim of the organization;
	Board members who disagree with a majority decision on the use of funds;
	Beneficiaries who feel they are entitled to more than they received; and,
	State attorneys general who institute legal proceedings against the board for issues such as mismanagement of funds.

Who Sues Nonprofit Organizations? Almost any day-to-day decision or action by anyone in your organization can trigger a lawsuit. Of all the lawsuits brought against nonprofits, more than 80% involve employees. Even with the most diligent efforts to prevent employment disputes, the following claims can be and often are alleged against nonprofits:
	Discrimination due to race, sex, age, national origin, religion, disability, or sexual orientation
	Wrongful termination
	Sexual harassment
	Promotions and compensation
	Interference with employment contract
	Hiring decisions
	Libel and slander
	Invasion of privacy

Our Nonprofit Organization Liability Policy defends against all of these allegations. This unique D&O program is managed by Schweickert & Company Insurance Agents, Brokers and Managers. We built our reputation and our business on specialized, quality products and on the high degree of concern and understanding we have for non-profit entities.

Because our Nonprofit D&O Policy encompasses so many areas, there is seldom any need for further endorsements. This keeps the premium at an appropriate level for nonprofit budgets. Our prime motivation is to:

Offer broad coverage for all insureds at an affordable rate;

Give insureds a clearly written and understandable policy form.

Schweickert & Company
15 Peters Canyon Road
Irvine, CA 92606
800-748-6293 • 714-436-6400
email us!