(March 2023)
Modifying the coverage provided by a policy's basic insuring agreement depends upon several conditions, including the insurer's underwriting practices, its appraisal of the individual risk, coverage features of a basic (unendorsed) policy and the insured's needs.
Related Article: Directors and Officers Professional Liability Policy Endorsements Checklist
Optional coverages may include the following.
This option protects designated parties against claims and suits alleging wrongful acts related to hiring, firing, harassment and workplace discrimination.
Related Article: Employment-Related Practices Liability Coverage Form Analysis
This optional coverage (available as an endorsement or as a stand-alone policy) can protect insureds against allegations involving an insured’s fiduciary duties regarding oversight/administration of a benefit plan.
Related Article: Trustees And Fiduciaries Liability Insurance
An option that provides, typically, a given dollar amount to respond to costs related to investigating a shareholder’s allegations under a derivative action.
This coverage applies to for-profit entities and extends the policy’s coverage to persons acting as outside directors (on a volunteer basis) to other organizations – typically charity, community and similar organizations.
The standard coverage requires that the insured pay and then be reimbursed by the insurance company. This option would permit the insurance company to pay on behalf the insured.