Page 14 - Smith Ins. Primer

Directors and O cers Liability
Directors and o cers liability provides protec on against claims alleging loss arising from mismanagement or wrongful acts.
A wrongful act means any breach of duty, neglegence, error, misstatement, misleading statement, omission or other act done or wrongfully a empted by the associa on.
Scope of Coverage
Claims Made Form
Provides protec on for claims made or presented to the insurance company while the policy is in force, without regard to when the event occurred. Most policies today are wri en
on a claims made form.
Full Prior Acts
Protec on for losses, which occurred before the policy incep on on a claims, made coverage form. Full prior acts coverage eliminates a retroac ve date.
Reten on
Amount of claim payment for which the associa on is responsible. The reten on may be in addi on to a policy deduc ble.
Persons Insured
Should include the associa on; directors and o cers, past and present (elected or appointed);
employees; commi ee chairs and members; and other associa on members ac ng at board direc on.
14