A government agency brought a suit against the Directors of a non-profit corporation alleging negligence in the handling of donations. The coverage provides personal protection for Directors and Officers of Profit and Non-Profit organizations against liabilities which may be imposed upon them while performing their duties. Protection is provided against Wrongful Acts, or Alleged Wrongful Acts. The insurance protects individual directors and officers when they are sued individually or jointly. When the operation of an indemnity clause in the corporate bylaws causes the corporation to indemnify the directors, the policy will cover the corporation for this instance.
Coverage includes damages, judgments, settlements, costs, and defense costs.
The insurer will not defend the Corporation if it is named in the lawsuit. For the full edition of this newsletter, please subscribe . Please read our website legal disclaimer .