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Directors & Officers/Employment Practices Liability

Protect Your Fraternal Organization

The Directors & Officers (D&O) Liability policy can be confusing, but we’re here to help you navigate this policy and more.

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Why Do Fraternities and Sororities Need D&O Liability Coverage?

  • Non-Profit D&O Insurance
    The need for D&O Liability coverage as a non-profit is more important than you think to protect your members and organization.
  • Even Non-Profits Have Risk
    There is a myriad of claims and lawsuits that could affect your ability to operate. We’ll help you understand and manage your risk.
  • Tailoring to Your Unique Needs
    We offer D&O products tailored to the unique needs of fraternal organizations, ensuring comprehensive coverage that makes sense for you.

Learn More About D&O Liability Coverage

Read our informational PDF to better understand D&O Liability and how Holmes Murphy can help.

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Fraternal D&O FAQs

What is Directors & Officers Liability coverage?

The Directors & Officers (D&O) Liability policy is often confused 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 their fiduciary duty to the organization, third-party discrimination, and, where applicable, employment issues. The 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 to 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, officer, and trustees.
  • The financial burden of defending a D&O lawsuit can drain a non-profit organization’s badly needed resources.
How do we tailor coverage to your unique needs as a fraternal organization?

We offer a D&O product designed specifically to you. 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 allegations.
  • 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.
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.
What are some misconceptions about D&O policies and claims?

Myth: A non-profit organization is well protected with a traditional corporate D&O policy. Truth: Policies not written specifically for non-profits usually have too many exclusions and limitations to provide the necessary protection.

Myth: Comprehensive General Liability insurance fully covers D&O claims. Truth: 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.

Myth: State enacted legislation offers complete protection from D&O claims. Truth: These statutes provide only limited protection on a state level and no protection for violations of federal law.

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What Makes Holmes Murphy Fraternal D&O Different?
Learn more about Holmes Murphy crafted Fraternal D&O Liability coverage.
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