Directors and
Officer's Insurance
The Maryland Nonprofits
Directors & Officers (D&O) Liability Insurance Program features
insurance provided by Executive Risk Indemnity and is being sold
through Gorges & Company, Incorporated. Coverage is only available
to qualified 501 (c) nonprofit members of Maryland Nonprofits.
THE MARYLAND NONPROFITS D & O PROGRAM
Standard Coverage: The Maryland Nonprofits D&O Program provides
limits beginning at $1 million and deductibles as low as $1,000
for premiums starting at $1000. The plan has been carefully reviewed
to assure that it contains the best features available in the D&O
market. Special features include:
- Coverage for Staff, Volunteers,
and Committee Members: Many D&O policies
only provide coverage for the Directors and Officers. But
the Maryland Nonprofits D&O Program also provides coverage
for all employees, volunteers, and committee members working for
your organization.
- Coverage for Your Organization:
Many D&O policies only provide coverage for
individual people, and don't provide any coverage for your organization.
The Maryland Nonprofits D&O Program also provides Association
Coverage ("entity" coverage) to protect your organization.
Coverage is provided for claims brought against your organization.
This coverage may not be available under your general liability
policy or under a traditional D&O policy.
- Coverage for Employment Practices: Many D&O policies provide no coverage for
employment discrimination, wrongful termination or other claims
involving your employment practices. Yet these are the most likely
subjects raised in suits against your organization and your board.
The Maryland Nonprofits D&O Program specifically covers employment
practices.
- Compatibility with Maryland's
Charitable Immunity and Volunteer Immunity Laws:
The Maryland Nonprofits D&O Program is designed
to dovetail with, and is priced to reflect, the immunity from
liability which is available under Maryland law to nonprofit organizations,
their board members, staff and volunteers. At Maryland Nonprofits,
we continually monitor laws and court decisions in this area and
will inform Executive Risk Indemnity of changes needed to assure
that this policy is consistent with those laws.
The Executive Risk Indemnity
(ERI) nonprofit policy is issued on an admitted basis in Maryland.
Many other D&O policies are written as surplus line insurance
by "non-licensed companies," or by "risk retention
groups," and are not subject to the same level of regulatory
scrutiny. Policies issued by unauthorized companies or risk retention
groups are not protected by the Property and Casualty Guarantee
Corporation.
If
you have more questions, please refer to Frequently
Asked Questions About D & O Insurance.
If you are interested, download
and complete the application, attaching copies of:
- the minutes from the four most recent
board meetings
- a copy of the organization's personnel
policies
- the determination letter from the IRS
- the most recent audit or IRS Form 990
- and a copy of the front page of your current
D & O insurance policy
Please
give a written explanation for any materials not provided.
All materials are to be forwarded to:
Maryland
Nonprofits
190
W. Ostend Street
Baltimore,
Maryland 21230.
We will contact you for more information or notify you of the application's
approval and a start date. All invoicing will be done by Gorges
& Company, Inc.
If you have additional questions or would like more information,
please contact Nancy Hall at Maryland Nonprofits, 410-727-6367 or
800-273-6367 ext. 11, or via e-mail at nhall@mdnonprofit.org.
PRODUCT COMPARISON |
MARYLAND
NONPROFITS
D & O PROGRAM |
YOUR CURRENT PLAN |
| Covers all directors, officers, employees, including staff, volunteers, and committee members. |
|
|
| Pays defense costs on a current basis, rather than reimbursing expenses after settlement or advancing them at insurer's sole option. |
YES |
|
| Duty to Defend (Executive Risk provides a qualified attorney once the claim is made and pays all bills on a current basis after any deductible is met). |
YES |
|
| Coverage for wrongful termination and employment-related practices. |
YES |
|
| Spousal extension included. |
YES |
|
| Prior acts coverage (no retro-date restrictions). |
YES |
|
| Entity coverage available. |
YES |
|
| Provides coverage for claims brought by insured persons. |
YES |
|
| Some personal injury coverage included. |
YES |
|
| Admitted carrier (no surplus lines taxes). |
YES |
|
| Non-cancelable by the insurer once paid in full |
YES |
|
| Limits of coverage (ability to quote to $25,000,000) |
$1,000,000 |
|
| Deductible for most groups |
$1,000 |
|
| Annual Premium beginning at |
$815 |
|
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|