What Does Directors and Officers for Educators Cover and Exclude?

What Does Directors and Officers for Educators Cover and Exclude?

Professionals who work in education typically need unique insurance coverage, and the directors and officers of educational institutions are no exception. Unfortunately, many of these professionals may not know exactly what they need to look for in a Directors and Officers for Educators policy. It’s important for these individuals to first become familiar with the risk areas these policies can address.


Typical Protection


Directors & Officers insurance protects against claims of negligence or other failings in the performance of professional duties. Misuse of funds, failure to maintain legal compliance, and inadequate disclosure of information are just a few examples of errors that could provide grounds for claims. To be covered under Directors and Officers insurance, these issues must occur naturally; intentional misconduct and fraud are never covered.


Areas Requiring Additional Insurance


Directors and Officers for Educators only covers non-physical losses, such as financial and reputational loss; bodily injury and property damage are excluded. Issues with employment practices, breach of contract, and information security are typically not covered, either. However, other types of insurance, such as general liability, cyber liability, and employment practices liability, can address these additional areas of risk.


Understanding the Available Coverage


It’s important for the directors and officers of educational institutions to speak with an insurance provider that offers policies tailored to the unique risks of the educational sector. An insurance agent can help a director or officer better understand what kind of coverage the insurance will offer and what kind of additional policies may be necessary to ensure full protection.


photo credit: Gates Foundation cc
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