• Directors & Officers (D&O)/Employment Practices Liability

    What is Directors & Officers coverage?

    The Directors & Officers Liability (D&O) policy is probably the most misunderstood policy of a fraternity’s or sorority’s insurance program. Many confuse the policy with General Liability which covers bodily injury, property damage, and personal injury claims even if brought against a director or officer. A D&O policy protects an organization and its individual officers and directors for  a wide variety of possible claims ranging from malfeasance by an officer in his or her fiduciary duty to the organization, third-party discrimination, and, where applicable, employment issues. The RSUI D&O policy was designed by Holmes Murphy to ensure that the unique exposures of a fraternal organization are addressed.

    Why is non-profit D&O insurance important?

    In today’s litigious society, the savvy non-profit entity recognizes the need for D&O Liability Coverage. These are the facts:

    • Non-profit organizations are not immune from costly litigation.
    • Employment-related suits, such as harassment and wrongful termination, are at an all-time high. Coverage for these claims is not provided by the General Liability or Workers’ Compensation coverage of the chapter or house/alumni corporation.
    • Directors and officers are subject to duties of diligence, obedience, and loyalty and can be sued for negligence in the performance of those duties.
    • A claim could threaten the personal assets of directors, officers, and trustees.
    • The financial burden of defending a D&O lawsuit can drain a non-profit organization’s badly needed resources.


    We offer a D&O product tailored for the unique needs of a fraternal organization

    It includes:

    • Modification of the Insured v. Insured exclusion to ensure a national organization is properly protected against claims brought by local affiliated organizations or members.
    • Amended settlement clause
    • Coverage to defend breach-of-contract allegation
    • Coverage for crisis management expenses
    • Coverage for a loss arising from a fiduciary claim
    • Coverage for the cost to defend a claim related to a violation of the Fair Labor Standards Act
    • HR Loss Prevention services

    Want to take this information with you? Download the PDF.

    Who brings claims against non-profit organizations?

    • Donors who feel their contributions have not been used to further the expressed aim of the organization.
    • Board members who disagree with a majority decision on the use of funds.
    • Members of the organization who believe they have been wrongfully expelled from the organization.
    • Employees of local chapters and national fraternity alleging wrongful termination, discrimination, or harassment.


    Don’t fall prey to the following misconceptions

    • A non-profit organization is well protected with a traditional corporate D&O policy.

    Probably Not: Policies not written specifically for non-profits usually have too many exclusions and limitations to provide the necessary protection.

    • Comprehensive General Liability insurance fully covers D&O claims.

    Definitely Not: Comprehensive General Liability insurance provides limited coverage in the typical D&O claims situation. For example: Directors and trustees usually are not afforded coverage, and many carriers are excluding employment-related claims altogether.

    • State enacted legislation offers complete protection from D&O claims.

    Not Really: These statutes provide only limited protection on a state level and no protection for violations of federal law.

    What you need to know about Directors & Officers Coverage


    A premium indication for coverage can be obtained by contacting

    Holmes Murphy Fraternal Practice
    Marketing Department
    13810 FNB Parkway Suite 300
    Omaha, NE 68154

    Phone: (800) 736.4327
    Fax: (800) 328.0522
    Email: fraternalinsuranceapp@holmesmurphy.com

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Directors & Officers (D&O)/Employment Practices Liability