Tag: "Non Profits"

What is Directors and Officers coverage?

author | November 10, 2010

This is a question often asked by insureds when their insurance agent suggest getting a quote for this coverage. Usually insureds think that their General Liability will cover this risk, however, this is truly not the case. As a matter of fact without this coverage Directors and/or Officers of a corporation can be completely exposed personally for their actions should a suit arise.

From large corporations to small businesses to non-profits all can have some degree of exposure and therefore should have Directors and Officers coverage, otherwise known as DNO coverage. For the people on these boards Directors and Officers (DNO) coverage is essential should they be brought into a law suit for their actions and/or decisions which a third party is suing over.

Although many boards do not understand the importance of this coverage for their personal exposures it is vital that corporations have this in place. Unfortunately many board members do not request to see the policy prior to their service to their potential detriment.

There are a number of carriers that offer Directors and Officers coverage however it is limited in comparison to the carriers that write General Liability. There are a few companies that specialize in this coverage one of which is “Monitor”. This carrier for example has broad coverage when compared to other General Liability policies with Directors and Officers included. For this reason it is essential to read and fully understand the coverage afforded in these policies as with any insurance.

As always different carriers may rate differently thus charging different premiums. For this reason obtaining mulitple quotes is important once the coverage is determined to be adequate for the exposures. By requesting different quotes insureds will glean a broader understanding of the carrier’s policy and pricing and will be better informed even if using an insurance agent.

With the internet many companies are available to quote online or over the phone at no cost to the insured or the one seeking this coverage. Usually an application is required along with a Loss Runs report if there was prior coverage. Of course Loss Runs would not be necessary if Directors and Officers coverage was not prior. If this is the case the carrier may request a “no loss” letter stating there have been no knowledge or action against the corporation.

Once a carrier has offered a quote and the insured accepts, the insured can bind coverage with the payment and the board can rest easy knowing that they are personally covered for their actions as a Director or Officer on the board.

Cheap Church Insurance

author | September 28, 2010

With the economy still very weak and consumer confidence low as of September, 2010, many not for profit organizations are feeling the pinch. Usually in a tough economical climate folks will look to cut back their expenses and quite often the first hit is in charitable giving. Thus, a number of organizations are looking at how to reduce costs and overhead which spurs the search for cheap church insurance.

One insurance option that churches and other non-profits reconsider is in the area of their property and casualty insurance. With a soft market currently due to the economy many church insurance programs sold by different insurance carriers and brokers have seen reduced rates. This in turn obviously can lead to lower premiums.

Shopping the existing insurance can be extremely beneficial if the current insurance program has not been changed in more than three years. Often times carriers and or brokers can become complacent if there is not an active relationship with the church or the non-profit group.

By re-shopping and looking for cheaper church insurance things like deductibles and values can be assessed and considered for budgeting. Although looking for cheap church insurance can have it’s up sides it can also have it’s downsides if churches don’t carefully consider the coverage being offered in comparison to what they may currently have.

When working with a local insurance agent they can explain to you if the coverage they are proposing is “better” or “less” than the existing coverage. By determining this churches can then truly realize any savings to be had from a premium perspective and be confident that their coverage is correct.

Remember when looking for cheap church insurance there are direct writers such as Guide One and then there are non-direct writers like Philadelphia, Hanover, Bunker Hill and a number of others. By obtaining multiple quotes through a broker or shopping for cheap church insurance yourself, you can be assured that you will find the best price and be more familiar with the coverage your getting.

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