The Directors and Officers/Public Officials Liability Insurance Program provides protection for financial loss as a result of a claim alleging a wrongful act, error or omission, etc. in the executive/management level of an agency. It also provides coverage for Employment Practices Liability Insurance (EPLI) for claims brought by employees or potential employees alleging a wrongful employment practice and/or harassment or discrimination
What is Covered?
Liability protection is available for the Insured Person and the State Agency in the course of their public duties.
The program can include the following coverage but not limited to:
- Directors’ and Officers’/Public Officials Liability – insures against losses as a result of alleged wrongful acts brought by legal action
- Broad Employment Practices Liability – provides coverage to employers (PDF) against claims made by employees alleging: Discrimination (based on sex, race, age or disability, for example) Wrongful termination.
- Third-Party Employment Practices – refers to claims made by non-employees, usually customers, who allege that an employee engaged in wrongful conduct, typically sexual harassment or discrimination.
- Crisis Management Fund – designed to help a business limit the negative impact of events on the business’ reputation. It also covers reputation threats such as product contamination or recall, terrorism and political violence, natural disasters, workplace violence, and adverse media exposure.
- Nonprofit Outside Directorship Coverage – helps cover the defense costs, settlements and judgments arising out of lawsuits and wrongful act allegations brought against a nonprofit organization.
Advantages of State Sponsored D&O Program
Crisis Management Fund is a sub-limit within the policy that provides public relations, advertising expense, etc. as a result of a defined event likely to cause adverse publicity to your organization due to a covered claim.
Nonprofit Outside Directorship Coverage can be provided if you are an agency that provides service on certain nonprofit boards.
EPL AssistTM is a service provided to the program’s participants that is a resource for the Legal and Human Resources department. The web portal contains a wide variety of resources ranging from employment law, legal content, forms and analysis, and the ability to interface directly with Littler lawyers. In addition to the web portal, participants are given a toll-free hotline service number as well as training webinars and podcasts.
Also available as companion coverages:
- Privacy and Network Security Liability can be provided as a sub-limit or separate policy (the standalone policy is subject to the SORM 201 process) to cover the liability exposures encountered with privacy and network security violations. This includes failure to properly handle, manage, store, destroy, or otherwise control personal information or the failure to protect your network against unauthorized access or use. In addition, certain first-party coverage for expenses incurred by an insured can be provided as a result of a breach of personal information.
- Fiduciary Liability – (subject to the SORM 201 process) Designed to protect the business from claims of mismanagement and the legal liability arising out of their role as fiduciaries. A fiduciary liability policy covers associated legal costs to defend against claims of errors and a breach of fiduciary duty.
How Do I Obtain a Quote?
- ACE Express Application (PDF): If you are a College, University or Healthcare Operation, complete and return this application at your earliest convenience.
- ACE Public Entity Liability Application (Word): All agencies other than a College, University or Healthcare Operation, complete and return this application at your earliest convenience.
Please attach copies of the following to application:
- Audited Financial Statement of Budget for the most recent available fiscal year, if the applicant has more than $500,000,000 in Annual Budget.
- Minimum of last 3 years of liability claim loss runs (5 years desired).
- Current Employee Handbook including procedures on sexual harassment, discrimination and employee grievances, if the applicant has more than 1,500 full-time and part-time employees.
- Copy of the Public Entity’s Employment Termination procedures, if the applicant has more than 1,500 full-time and part-time employees.
All inquiries and documents can be submitted to firstname.lastname@example.org.