This document is meant to provide a general overview of the distinct insurance policies an association may wish to pursue. This document is not meant to be comprehensive of all details. Consult your insurance agent/broker for specific policy details.
DIRECTORS & OFFICERS OR ASSOCIATION PROFESSIONAL LIABILITY INSURANCE (APLI)
A Directors & Officers (D&O) or APLI plan insures you, your association and its board members, directors and officers, all employees (paid staff), all committee members and volunteers acting at the direction of the association. Recognizing most claims are based upon allegations, DEFENSE is the No. 1 reason for purchasing this type of coverage. It protects those listed above from:
- as a board member or volunteer, being personally held responsible for acts conducted by the association
- any actual or alleged wrongful acts, including negligent acts or breach of duty while performing the association’s business
- incidents involving antitrust, price-fixing, restraint of trade, discrimination and violations of ADA.
PROFESSIONAL LIABILITY
Professional liability insurance protects the policyholder against claims made by a third party, the client association, its members or any individual who might suffer a loss due to your professional practices.
This coverage could benefit any business that provides advice or gives a service, and is sometimes required under contract by other businesses that are the beneficiaries of the advice or service. While a typical general liability insurance policy will only respond to a bodily injury, property damage, personal injury or advertising injury claim, professional liability will protect against claims covering professional services and work products. Common reasons claims are filed against professional liability policies include negligence, misrepresentation, violation of good faith and fair dealing and inaccurate advice.
Professional liability insurance policies generally only cover claims made during the policy period, so claims related to incidents that occurred before the coverage was active may not be covered. However, retroactive date may provide coverage for claims made during the policy period but that relate to an incident after the retroactive date as long as the retroactive date is earlier than the inception date of the policy. It is important to continue your coverage, because cancelling the policy will, in effect, make it as if you never had coverage for any incidents.
THE DIFFERENCE BETWEEN APLI AND A STANDARD DIRECTORS & OFFICERS LIABILITY POLICY
APLI offers broad coverage at an affordable cost. Many directors and officers liability insurance policies require very large deductibles, do not extend coverage beyond officers and directors and require the association to share in defense costs and claim payments. Some policies do not provide any coverage for the association itself, committee members, staff employees and volunteers. However, the AMC APLI does provide coverage for all the exclusions just mentioned.
GENERAL LIABILITY INSURANCE
General Liability insurance is third-party risk insurance. The insurance equips your business with liability protection resulting from bodily injury, property damage and advertising to others caused by you or your employees. The insurance pays the costs of defending or settling these claims, which protects your business from expenses that could bankrupt it. The insurance company also covers compensatory and general damages. Other losses that may be covered include:
- personal injury, bodily injury and property damage liability insurance for the policy holder, his or her spouse and the policy holder’s employees. Not all General Liability policies cover independent contractors; check with your insurance agent or broker to be sure.
- all immediate expenses resulting from an injury to a third party, as covered by the no-fault provision for medical payments
- host liquor liability
- hired and non-owned auto liability
- crime and fidelity (if the policy is a business owner’s policy)
This coverage is also where Certificates of Insurance are provided to relay coverage included under the policy to a third party, i.e. a conventional management company.
Under the terms of the policy, associations do not have coverage for product recalls, on-the-job injuries, possible illegal actions of corporate officers or damage to personal property stored at your business. In addition, coverage is excluded for accidents involving company vehicles, or costs incurred if a professional service fails to fulfill their contractual obligations. This coverage includes these particular exclusions because other types of insurance are available that will provide coverage for them.
ERRORS AND OMISSIONS INSURANCE
Errors and Omissions (E&O) Liability Insurance protects against loss and/or damages from a claim of negligent acts, errors or omissions (a mistake) while conducting business that causes financial harm to another. These can occur on almost any transaction in any profession. This type of insurance helps to protect a professional, an individual or a company from being personally responsible for paying the cost to defend against lawsuits and related cost of lives or property lost relating to an error or omission in providing covered professional services.
This is a separate coverage from a standard general liability or property insurance policy.
FIDELITY INSURANCE
Fidelity insurance protects organizations from financial losses resulting from crime, such as employee dishonesty, embezzlement, forgery, robbery, safe burglary, wire transfer fraud, counterfeiting and other criminal acts. Businesses that handle cash or other securities should carry a fidelity insurance policy. Because crime-related losses are not typically covered by most property insurance policies, crime protection insurance is a necessary component for any business.
Liabilities covered by crime insurance usually fall into two categories, although many polices combine both types of coverage:
- Money and security coverage pays for money and securities taken by burglary, robbery, theft, disappearance and destruction
- Employee dishonesty coverage pays for losses caused by most dishonest acts of employees, such as embezzlement and theft
EVENT CANCELLATION INSURANCE
Event Cancellation Insurance protects against losses related to larger events that must be cancelled for any number of covered causes. Programs covered under an Event Cancellation Insurance policy may include:
» Athletic / Sporting Events
» Motorsport events
» Community events
» Special events
» Concerts & Music Events
» Trade Shows & Exhibitions
» Conventions & Meetings
» Teleconference
» Fairs & Festivals ...And more
Causes of loss may include:
- Power failure
- Damage to surrounding venues or infrastructure resulting in lack of access
- Failure of public transport facilities or denial of access
- Natural catastrophe such as earthquake and flood
- Non appearance of a Principal Speaker/Entertainer
- Damage to leased or rented venues
- Inability to erect facilities at venue
- Disease outbreak (certain exclusions may apply)
- Labor Dispute/Strike risks
- Failure of TV broadcast
- Any other previously unforeseen cause not excluded
- Adverse weather conditions (This coverage is broader under the wording than rain insurance and there are no rain gage requirements)
- Terrorism
Fill out the form below to read about the different options available here at AH.
