Most high-profile cases against directors and officers involve large corporations but this doesn’t preclude non-profits, including amateur sports associations, from the need for Directors and Officers (D&O) Liability coverage. D&O insurance protects an organization, its directors, officers, employees, and volunteers against lawsuits alleging financial mismanagement, discrimination, failure to abide by the rules or bylaws in making an administrative decision and other types of claims not covered by Commercial General Liability (CGL) insurance.
Following are just some examples to illustrate the need for providing D&O insurance to amateur sports organizations:
- A player doesn’t make the Select Team or was deemed ineligible for an All-Star Team due to geographic restriction and sues the board.
- A player, coach, employee or volunteer alleges discrimination due to gender, age, race, physical ability or disability, etc.
- A coach sues management for wrongful termination.
- A player alleges sexual harassment and discrimination by a coach and sues the board for failing to stop the coach’s behavior.
D&O insurance can be designed to provide protection to the organization from lawsuits alleging wrongful acts or errors and omissions, including eligibility matters and discrimination lawsuits. D&O does not provide coverage for claims arising out of any bodily injury or property damage to others. These types of claims are covered under the CGL policy. Therefore, if a director of the league were sued because someone was severely injured during a game, the claim would be covered under a CGL policy, not D&O insurance.
Some coverage features in a D&O policy to look out for include duty-to-defend, defense cost for both individual insureds and the organizations regarding breach of contract, defense outside of the limit, broad definitions of "Employment Practices Violation" and "Wrongful Act,” and full prior acts insurance.
RPS Bollinger Sports & Leisure focuses on providing a full suite of insurance products to meet the coverage needs of amateur sports organizations, from national governing bodies to local sports leagues. In addition to offering D&O solutions, we also can provide Crime, Cyber Liability, Equipment, Event Cancellation, General Liability, and Tournament and Accident insurance. To find out more about our high quality and competitive programs, please contact us.