SigEp provides a directors’ & officers’ (D&O) liability policy which protects both the undergraduate chapter and Alumni & Volunteer Corporation. The policy protects against claims and suits brought by third parties alleging they sustained a financial injury as a result of the failure of the Director and Officer to carry out the fiduciary responsibilities of their position. The D&O policy protects against different exposures than those covered by the General Liability policy. The current coverage is with Resurgens Specialty Underwriters Indemnity (RSUI).
Some covered examples of D&O are:
- Claims filed by undergraduates and alumni due to wrongful termination of membership or being wrongfully excluded from the opportunity to join the organization;
- Employment-related claims such as wrongful termination, sexual harassment, discrimination; and
- Claims filed against Directors and Officers by other volunteers alleging fiduciary negligence in undertaking the roles and responsibilities of their leadership position.
Most costs associated with D&O claims involve legal fees and expenses, and SigEp’s D&O policy features coverage whereby these types of expenses are paid in addition to the policy limit and therefore do not erode the limit before settlement. The premium cost is billed to the chapter each January.