KI DIRECTORS AND OFFICERS
LIABILITY INSURANCE
INCREASE YOUR CLUB’S
FINANCIAL SECURITY
KI DIRECTORS AND OFFICERS
LIABILITY INSURANCE
WHAT HAS HAPPENED?
- DISCRIMINATION CLAIM ARISING FROM CLUB
CHOOSING A LIMITED # OF ESSAY SUBMISSIONS
FROM A LARGE POOL OF APPLICANTS’ ESSAYS
- VOLUNTEER PATTING A PEANUTS BUYER ON
THE BACK AS BUYER WAS THANKED. CLUB WENT
BANKRUPT
- AVERAGE CLAIM FOR THESE TYPES OF CLAIMS $250,000.
KI DIRECTORS AND OFFICERS
LIABILITY INSURANCE
WHY BUY COVERAGE?
– CLUB FINANCIAL PROTECTION FROM LAWSUITS
– PROTECTS PERSONAL ASSETS OF CLUB OFFICERS
AND DIRECTORS
– FINANCIAL PROTECTION FOR DIRECTORS,
OFFICERS, COMMITTEE CHAIRS & MEMBERS
– PROVIDES REIMBURSEMENT TO CLUB TO PAY
BACK DIRECTORS AND OFFICERS FOR THEIR
LOSSES
– PROVIDES COVERAGE FOR ALL CLUB MEMBERS
KI DIRECTORS AND OFFICERS
LIABILITY INSURANCE
D & O POLICY HIGHLIGHTS:
- COVERAGE CANNOT BE CANCELED EXCEPT
FOR PREMIUM NONPAYMENT
- BROAD DEFINITON OF INSUREDS
- DEFENSE COSTS ARE OUTSIDE THE LIABILITY
POLICY LIMIT
- NO INSURED VS. INSURED EXCLUSION
- FULL RETALIATION COVERAGE
KI DIRECTORS AND OFFICERS
LIABILITY INSURANCE
D & O HIGHLIGHTS (CONTINUED):
- PUNITIVE DAMAGES COVERAGE WHERE
INSURABLE
- NO INTENTIONAL ACTS EXCLUSION
- BROAD WRONGFUL ACT DEFINITION
KI DIRECTORS AND OFFICERS
LIABILITY INSURANCE
EMPLOYMENT PRACTICES LIABILITY INSURANCE
- PROTECTS THE CLUB AGAINST DAMAGES
FOR EVENTS RELATING TO ITS MEMBERS,
VOLUTEERS AND EMPLOYEES, INCLUDING,
BUT NOT LIMITED TO, WRONGFUL DISMISSAL,
HARASSMENT, DISCRIMINATION,
DEFAMATION AND UNFAIR HIRING/FIRING
PRACTICES (INCLUDING VOLUNTERS)
- PROVIDES DEFENSE COSTS ASSOCIATED
WITH RESPONDING TO RELATED LAWSUITS
KI DIRECTORS AND OFFICERS
LIABILITY INSURANCE
• COVERAGE AND PREMIUM COSTS
– D&O/EPL $1MM, $0 DEDUCTIBLE, $500 PREMIUM
– D&O/EPL $2MM, $0 DEDUCTIBLE, $750 PREMIUM
– D&O/EPL $3MM, $0 DEDUCTIBLE, $950 PREMIUM
– INSURANCE PROVIDED BY GREAT AMERICAN
INSURANCE COMPANY.
CLUB CRIME INSURANCE
YOUR CLUB MAY BE EXPOSED TO THEFT THAT
COULD FINANCIALLY IMPACT OR DESTROY ITS
ABILITY TO PROVIDE NEEDED COMMUNITY
SERVICE.
HERE’S HOW IT CAN HAPPEN: FUNDS THEFT,
FALSE RECEIPTS, EQUIPMENT THEFT, PETTY
CASH THEFT, PHONY INVOICING, ETC.
CLUB CRIME INSURANCE
EXAMPLES OF CLUBS IMPACTED BY CRIME
• 8-28-12-“The former Town Manager of Milo
and Treasurer of Three Rivers Kiwanis of Milo
and Brownville pleaded guilty Tuesday
morning to stealing $45,000 from the club.”
• The Treasurer “…pleaded guilty to Class B
theft in Piscataquis County Superior Court.”
CLUB CRIME INSURANCE
MULTI-$K
BANGOR BREAKFAST
ONLY TREASURER THE CLUB HAD HAD
VERBAL REPORTS ONLY
ONLY ONE WITH MONEY ACCESS
NO AUDITS
NO CRIME INSURANCE
FINALLY GOT CRIME INSURANCE BUT NOT IN EFFECT UNTIL 10-112
CLUB CRIME INSURANCE
• KIWANIS CLUB TREASURER WITH CHECKSIGNING RESPONSIBILITY SET UP PHONY
SERVICES VENDOR AND WROTE CHECKS TO
SAME. CAUGHT BY EMPLOYER FOR DOING
SAME THING. AFTER LEAVING CLUB,
ADMITTED TO STEALING NEARLY $50,000
FROM CLUB.
CLUB CRIME INSURANCE
• KIWANIS CLUB SET UP A CONSIGNMENT
STORE AS FUNDRAISER AND USED A NOQUESTIONS-ASKED RETURN POLICY. CLUB
VOLUNTEER RUNNING THE STORE ALTERED
THE BOOKS TO SHOW FALSE RETURNS AND
PAID SELF IN CASH. VOLUNTEER DIED
SUDDENLY AND NEW BOOKKEEPER FOUND
THE CLUB HAD LOST NEARLY $10O,000 OVER
THE PREVIOUS FOUR YEARS.
CLUB CRIME INSURANCE
• WHAT CRIME COVERAGE DOES:
– PROTECTS THE CLUB FROM THEFT OF FUNDS AND
DISHONEST VOLUNTEERS, MEMBERS, OFFICERS,
AND EMPLOYEES
– SOFTENS THE COST TO A CLUB FOR THEFT OR
EMBEZZLEMENT AND OTHER CRIME-RELATED
LOSSES
– PROTECTS THE INTEGRITY OF KIWANIANS
CLUB CRIME INSURANCE
• POLICY HIGHLIGHTS OF CRIME COVERAGE
– BROAD OCCURRENCE COVERAGE FOR
EMPLOYEE/VOLUNTEER THEFT, PREMISES,
TRANSIT, AND DEPOSITORS FORGERY
– BROAD DEFINITION OF THEFT
– PREMISES COVERAGE INCLUDE COMPUTER THEFT,
SAFE BURGLARY, AND ROBBERY
CLUB CRIME INSURANCE
• COVERAGE AND PREMIUM COSTS
– CRIME $10K, $250 DEDUCTIBLE, $95 PREMIUM
– CRIME $25K, $500 DEDUCTIBLE, $125 PREMIUM
– CRIME $50K, $500 DEDUCTIBLE, $155 PREMIUM
– HIGHER $ LIMIT POLICIES ARE AVAILABLE
– PACKAGE PREMIUMS SHOWN; IF CRIME
INSURANCE IS PURCHASED WITHOUT D & O,
CRIME INSURANCE PREMIUMS WILL BE HIGHER
– INSURANCE PROVIDED BY GREAT AMERICAN
INSURANCE COMPANY.