Protecting Your Future for a Lifetime
Even many years after leaving their positions, directors and officers of an organization can still be at risk of being named in a lawsuit. Consider the following claims scenario:
Christina served as president of a trade association. During her tenure, she diligently maintained a Devon Park Specialty Executive ViewPoint (EVP) management liability policy that provided directors and officers liability coverage. After her term expired, and she was no longer an officer or director of the association, the new president failed to renew the policy. Two years later, Christina and the new president were named in a lawsuit alleging mismanagement of funds, which was claimed to have occurred while Christina served as president and the EVP policy was in force.
Under Devon Park’s EVP policy, former directors and officers automatically receive an unlimited extension of time to protect themselves from claims if the new board elects to cancel or non-renew their coverage with us as outlined in the policy. The Lifetime Occurrence Reporting Provision (LORP) is a product feature accessible through Devon Park and USLI, offered at no additional premium. Let’s examine how the LORP coverage helped Christina in the claims scenario above:
Because Christina was not an officer or director of the association when the decision was made to non-renew the EVP policy, she had coverage for her defense costs under the LORP. The new president, however, had no coverage and was forced to pay a substantial amount out-of-pocket for his legal fees.
LORP gives former directors and officers peace of mind by incorporating the advantages of occurrence-based coverage into a claims-made policy.
Devon Park Specialty’s EVP policy provides this coverage feature along with many others that are critical to protecting the assets of board members.
Our EVP product is designed to cover private companies and nonprofit organizations. Common eligible classes include, but are not limited to:
|Assisted living facilities||Houses of worship|
Please contact your Devon Park underwriter for more information or a quote.
As always, thank you for your support and business.
Contact Kenny Bang,
Assistant Vice President, Underwriter | 844-438-6775 Ext. 2923
Written by Samantha Hildebrand
June 8, 2017