Association Liability Insurance
Association Liability Insurance, also known as Directors and Officers (D&O) Liability Insurance, is for directors, officers, and other key members of an organisation’s leadership. It protects against legal claims and liabilities arising from their actions or decisions made on behalf of the organisation.
It comprises professional bodies, sports associations, non-profit organisations, trade groups, and charity trusts.
Association Liability Insurance offers financial coverage to non-profit organisations, associations, and companies against their directors and officers. It covers legal expenses, settlements, and judgments from various sources, including shareholders, employees, regulators, customers, or other third parties.
Community organisations, Government and public entities and Financial institutions can obtain Association Liability Insurance to protect their directors and officers from claims related to financial mismanagement, regulatory compliance, or breaches of fiduciary duty.
Lifecycle Fire and General can help clients choose Association Liability Insurance depending on their circumstances and risk profile. We can assess the organisation’s needs and guide appropriate coverage.
Association Liability Insurance, or Directors and Officers (D&O) Liability Insurance, typically offers various types of coverage depending on the insurance provider and policy, but here are some common types of coverage available
- Directors and Officers Liability Coverage: This coverage protects directors and officers from claims arising from alleged wrongful acts, such as breach of fiduciary duty, negligence, errors, omissions, or misleading statements.
- Employment Practices Liability Coverage: This coverage protects directors and officers from claims related to employment-related issues, including wrongful termination, discrimination, sexual harassment, or retaliation.
- Crisis Management Coverage: This coverage helps cover the costs required in managing and responding to a crisis, such as reputational damage control, public relations expenses, or crisis communication services.
- Defense Costs Coverage: Defense costs coverage reimburses the legal expenses incurred by directors and officers in defending against covered claims, including attorney fees, court costs, and settlement or judgment amounts.
- Entity Reimbursement Coverage: Entity reimbursement coverage reimburses the organisation for amounts it pays to indemnify directors and officers for covered claims.
- Lifecycle Fire and General offer different combinations of these coverage types or additional endorsements tailored to the needs of organisations or industries.
Association Liability Insurance typically covers a wide range of claims, such as
- Financial mismanagement: Claims related to financial mismanagement, including allegations of fraud, embezzlement, or misappropriation of funds.
- Employment practices liability: Claims related to wrongful termination, discrimination, harassment, or other employment-related issues.
- Errors and omissions: Claims arising from professional errors, omissions, or negligence in duties.
- Misrepresentation: Claims alleging false or misleading statements made by directors or officers, such as in financial reports or public documents.
- Regulatory violations: Claims resulting from violations of laws, regulations, or corporate governance requirements.
Association Liability Insurance typically does not cover
- Claims arising from intentional illegal acts, fraud, or willful misconduct committed by directors or officers.
- Bodily injury or property damage claims. Liability Insurance is related to management decisions and actions.
- Claims arising from acts or incidents happened before the policy’s retroactive date or if the insured was aware of the potential claim before the policy inception.
- Contractual disputes or liabilities arising from breach of contract unless specifically included as an endorsement.
- Claims related to wage and hour violations, employee benefits disputes, or workers’ compensation.
Lifecycle Fire and General carefully tailor the insurance policy and advise our clients to choose a particular Association Liability Insurance that can give maximum coverage. We additionally help our clients identify any coverage gaps and address them appropriately.
Lifecycle Fire and General offer you the best insurance plan that can bear the financial burden of legal defence costs and potential damages. With this coverage, you may live peacefully and confidently coordinate your association.
Association Liability Insurance helps protect the personal assets of directors and officers, as they can be held personally liable for their actions.