[Board] Update on Directors & Officers Liability Insurance renewal

[Daniel Morissette]

On 12-05-16 9:56 AM, Seven (aka Arnulf) wrote:
>
> This might sound silly coming from an oldish board member but what
> exactly is this insurance goof for? I cannot really imagine a
> situation where they would cover anything I committed?!
>

Very good question. I have my own guesses as to why we need this 
insurance, but I'd love to get the advice of a specialist. Unfortunately 
our broker seems to be of very little use when it comes to providing 
advice. All they do is relay our questions to the insurer and report 
back with their own answers.

Here is what I just got in response to the possibility of restricting 
volunteers coverage...

> I have received an answer from the underwriter regarding restrictions or exclusion that we could add to the policy. They advised no restrictions or exclusions can be added to the policy.
>
> Per the underwriter, it seems no volunteers were covered under last year's policy. Please read the explanation below:
>
> "Since the definition of "Insured" on the Not-for-Profit Risk Protector form includes volunteers, the Insured has a significant EPLI (Employee Practices Liability Insurance) exposure which was not appropriately priced last year. The Insured had reported that one foreign employee was working for the company but did not warrant use of volunteers which would have otherwise impacted the exposure and, in turn, the premium. That being said, the Insured's EPLI premium has increased significantly this year because it has now been adequately underwritten to reflect the true exposure brought by the board members and volunteers performing services for the company."
>
> Please let me know if you have any questions. Thank you


I'll try to talk to them tomorrow to better understand what this means 
and see if removing the EPLI portion of the coverage might be an 
option... and if we do that then which coverage would be left.

Daniel