Directors & Officers Liability In today's litigious society, even Not-for-Profit organizations run the risk of being sued for an extensive list of alleged wrong-doing, such as: Discrimination (age, race, sex, membership, employment) Harassment Inefficient administration or supervision Waste of assets Misleading statements and misstatements Libel and slander Failure to deliver services Acts beyond granted authority Wrongful termination of employees Claim Scenarios 1. Misappropriation: A donor made a $100,000 contribution to a non-profit organization, specifying that the funds were to be used for a program to aid impoverished children. Instead, the organization, facing financial difficulties, used the donation to pay for their operating costs. The donor sued the non-profit, alleging misappropriation of funds, and was awarded the $100,000 contribution plus interest. 2. Employment Discrimination: An employee of a hospital (affiliated with a religious group), alleges he was fired due to his sexual orientation. he contends that the church representatives at the hospital were concerned about his orientation and treated him differently that heterosexual employees. The jury agrees with the plaintiff, awarding him $1,300,000 in additionl to the $300,000 defense costs incurred by the hospital. The judge admonishes that "charitable organizations have no license to discriminate any more that a private business does." 3. Gender Discrimination: An educational foundation selects two high school students to receive college scholarships. They grant the female student $25,000 and award the male $10,000. The male beneficiary files a claim, alleging the non-profit discriminated against him based on his gender by awarding him a lesser amount. The claim is pending. PROGRAM HIGHLIGHTS Who is the insurance company? Philadelphia Insurance Companies Who is covered? The organization, directors, officers, committee members, trustees, volunteers and employees For how much? Limits available up to $5,000,000 Excess policies providing higher limits are available How is a defense provided? Defend you for covered claims Defense expense is outside of policy coverage limit (in addition to) To receive a quote, please complete the Application and e-mail to mimsltd@mimsintl.com or fax it toll free to us at 800-652-4161. For questions or assistance, call 800-899-1399.