Directors & Officers Insurance

Providing Coverage ...

Directors & Officers (D&O) Liability Insurance policy can provide coverage for directors and officers for claims arising from their acts, omissions or decisions. Where the organization indemnifies its board, a D&O policy can reimburse the organization for amounts it has paid in indemnification.

Many waterworks and wastewater systems operate through a not-for-profit organization. Others may operate as part of a for-profit organization. Water supply systems may operate under the direction of a board of trustees or have another form of governance structure in place.

Directors and officers of non-profits share some of the same types of exposures as those who control for-profit businesses. Directors and officers of for-profits and non-profits can be sued or involved in proceedings by several parties, including members, third parties and government agencies.

Causes ...

Suits may arise from a wide range of causes including:

  • Conduct of fundraising activities
  • Payment of wages and deduction of taxes for employees
  • Breach of statute
  • Insolvency
  • Breaches of fiduciary duty and duty of care
  • Negligent supervision, screening or hiring of employees and volunteers
  • Additional obligations and higher standards of care as trustees
  • Failure to meet requirements for tax-exempt status as a non-profit.

 

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