Directors and Office Insurance
8/24/2014 - District: Montana - Submitted by: Mary Brydich
Nobody expects to be involved in a lawsuit. But insurance is designed to protect against the unforeseen. In the U.S. and Canada, directors and officers liability insurance helps protect Kiwanis clubs, districts and members against such claims—so Kiwanians can concentrate on service and fellowship.
Kiwanis International’s new D&O Liability Insurance Program makes this coverage less expensive for most clubs in North America. In fact, the insurance costs just US$4 per member for Kiwanis clubs (which can be paid from your service account). For any club with fewer than 125 members, that’s a savings from the previous $500-per-club premium. The coverage is effective November 1, 2014 (the beginning of the policy year), and all clubs in the U.S. and Canada will be billed for this coverage with their dues billing.
Why coverage matters
D&O liability insurance protects club or district assets and the assets of members against the costs of lawsuits. Just a few of the potential costs covered are employment practices liability (including accusations of discrimination, sexual harassment and wrongful termination), allegations of mismanagement of funds, failure to enforce bylaws and violation of state/provincial and federal bylaws.
D&O liability insurance protects the club or district itself as well as directors and officers—and it also includes committee chairs, other club members and even volunteers and employees. Thanks to the broad coverage, financial protection can even extend to foundations, and the Key Club and Circle K International clubs that a Kiwanis club sponsors.
What does the premium pay for?
For Kiwanis clubs, the low per-member cost of D&O liability insurance pays for the premium and a small administration cost. It also helps fund Kiwanis International’s payment of the US$50,000 deductible.
The premium can be paid from the club or district’s service account. As with general liability coverage, the premium will be automatically included with the dues billing. The claim process is also the same as for general liability insurance.
For Kiwanis Insurance questions call:
John S. Menyhart, CIC
Montana District Risk Manager
Kiwanis Insurance coverage includes (Paid by a portion of International dues) :
Commercial General Liability
Directors & Officers Liability (New in 2014)
Crime/ Money & Securities coverage
Accident/Medical for Kiwanis members in case injured while working a project