Punitive damages can be covered in states where those damages are insurable. The insurer pays all defense costs up front. Defense costs do not reduce the limit of coverage. When the claim is triggered, so is your defense. A higher deductible may be selected which would lower the premium.
Coverage includes areas that many other insurers exclude.
The policy covers outside directorship liability. Suppose you have asked one of your directors or staff people to serve on another nonprofit organization's board, and that person is sued because of action taken by that board. Prior acts are covered. The policy cannot be canceled by the insurer except for nonpayment of premium. If either you or the insurer choose to nonrenew coverage, you automatically are provided a 60-day extended reporting period for claims, and you have the option to purchase an additional period.