New York Council of

Nonprofits (NYCON)
Group Directors & Officers
Liability Insurance
Program

 Presented by the Council

Services Plus, Inc.
 Peter Andrew, Presenter
What Is D&O and Do we
need it?
 What is D&O?
 Board Errors & Omissions
 Employment Practices (EPL)
 Claim examples
 Operating Outside of Bylaws
 Wrongful Termination
 Misuse of Funds
 Discrimination
What Is D&O and Do we
need it?
 Why get D&O?
 NY NP Corp Law
 What is not covered
 No law against a suit
 No coverage for paid staff (CEO,
CFO, Etc.)
 No coverage for Gross Misconduct
 Board retention/recruitment tool
 Backs up your indemnification
clause
NYCON D&O Program
 Parties involved
 Chubb & Son, A division of
Federal Insurance Co. (Chubb)-
Insurer
 Marshall & Sterling Leeds Office-
Broker of Record
 Council Services Plus- Group
Program Manager
 NYCON- Sponsoring Association
NYCON D&O Program
 Coverage Features
 Per occurrence (and aggregate)
limits of $1MM or $2MM.
 Retention varies based upon
employee count (most have $1K-
$5K)
 10% Reduction in EPL Retention
for claims reported within 15
days.
NYCON D&O Program
 Coverage Features (cont.)
 Duty to Defend
 Defense cost outside the limit of
liability (DOL)
 Multi-year policy option
 $50 NYCON Risk Management
Credit
 Fiduciary Coverage available
(optional)
NYCON D&O Program
 Rates
 For agencies with 0-50 employees
$1MM is $850/yr, $2MM is
$1415/yr.
 For agencies with 51-150
employees $1MM is $900/yr,
$2MM is $1450/yr.
 For agencies with 151-500
employees $1MM is $945/yr,
$2MM is $1605/yr.
NYCON D&O Program
 Underwriting Guidelines
 Be a member of NYCON
 Be incorporated and have IRS
501(c) tax status
 Be operational for at least 12
months
 Have a Positive FB and OI
 Less than $5MM in total revenue
NYCON D&O Program
 Underwriting Guidelines
(cont.)
 No D&O or EPL claims/litigation
within the last 5 years
 Be an approved class of business
 Some non-eligible classes are-
Medical Clinics, Charter Schools,
Country Clubs, Water District (other
than farm irrigation), Mediation,
Legal, Housing Co-ops, Foster Care
NYCON D&O Program
 How to apply
 Interested members need to
complete a 2 page Program
Application and submit to CS Plus
with;
 Most recent IRS 990 or Audited
Financials
 Copy of Bylaws
 Copy of Board List
NYCON D&O Program
 When to apply
 Interested members without current
coverage can apply anytime
 Members with coverage through
another carrier must apply within 90
days of their renewal date
 Members with Chubb, but through
another Broker, must submit a Broker
of Record Letter at least 90 days
before renewal
NYCON Fiduciary
Liability Program
 Your plan must be in operation
for 3 years
 No claims
 No non-publicly traded assets
 No more that $500K in assets
 Rates are $180 for $100K limit
$300 for $250K Limit & $480 for
$500K limit ($0 Retention for all)