Should Chapters Be Covered by the Parent Association's D&O Insurance?

Should Chapters Be Covered by the Parent Association's D&O Insurance?

By: Leslie T. White

The potential methods for insuring the directors and officers of association chapters are as diverse as the various affiliation models between parent and component organizations. When considering whether to include your chapters in your association's Directors & Officers insurance coverage, be sure to weigh cost benefits against potential negative impacts on policy limits and premiums.

Last month, ASAE's Executive Management Section's Discussion Forum had a thread discussing whether associations include chapter directors and officers in its Directors & Officers Liability (D&O) insurance policy. The diverse responses affirmed that no two associations handle chapters in the same way. There are as many models as there are associations. However, the discussion identified some issues to consider when deciding if an association should include its chapters under its D&O policy. ...