The Council on Foundations is pleased to offer a 10 percent discount on directors and officers (D&O) liability insurance. D&O insurance provides financial protection for a foundation and its directors, officers, employees, and volunteers in the event of a lawsuit.
The policy is provided through Aon Association Services and underwritten by The Hartford.
A foundation doesn’t have to be in the wrong to be sued. D&O insurance protects foundations by covering costs—defense, damages, or settlements— that result from addressing actual or alleged violations in court.
About 90 percent of D&O claims are employment-related issues—wrongful termination, harassment, discrimination. About 40 percent of these are straight termination cases.
Some features of The Hartford’s policy:
The Council does not believe that D&O insurance is right for every foundation. Rather, we encourage you to decide, in consultation with your foundation’s legal counsel, if D&O insurance is the right choice for your foundation’s needs.
The Hartford is committed to offering D&O insurance to the foundation community at competitive rates. For foundations with $1 million or less in total assets, premiums begin at $400.
The Council offers the D&O program to all grantmakers as a service to the field. The Council does not receive a share of the premiums or any other form of remuneration in connection with the program.
Coverage is available in all states. Brokers can access the Council’s D&O program through Aon Association Services.
This discount is available only to grantmakers with current membership in the Council or in one of the participating regional associations of grantmakers in states where the discount is approved.
To find out if your regional association participates, check with your regional association, Aon, or the Council.
The discount is still in the process of being approved by the insurance commission in the following states: Alaska, Louisana, New York, and Vermont.
Download an application and other materials at Aon’s D&O website or call Jason Tharpe, program administrator at Aon, at 202-429-8561. To obtain the discount, let Aon know that you are a member of either the Council or a participating regional association.
If you have questions for the Council about the program, contact Maya Harris, staff attorney, at 703-879-0714 or maya.harris@cof.org.
D&O Do’s and Don’ts: Making the most of your insurance coverage
by Jane Nober, former special counsel to the Council on Foundations
To apply or not to apply—that’s the first question many foundations face when considering D&O insurance. But the questions don’t stop there. What types of activities do you disclose in the application process? Do you have any arrangements that might be considered unusual? Once you’re covered, what will increase your liability exposure? When do you report a complaint or lawsuit? This legal brief puts D&O insurance in perspective, providing an introduction to how these policies work.
Directors & Officers Liability Insurance and Indemnification, Second Edition
by John A. Edie and Jane C. Nober
Written for nonlawyers, this booklet provides easy-to-understand descriptions of liability and D&O insurance. Its question-answer format offers answers to important questions such as: What are the real risks? How can these risks be minimized? What should one look for in a good D&O policy? How much coverage is needed?