Three Questions to Ask Before Investing in D&O Insurance for Educators

Because of the position of trust that educators, specialists, and school administrators are placed in, there is always a chance that they can be sued for alleged improper conduct. While the majority of educational allegations are dismissed, it is imperative those in the educational system who stand a lot to lose in the case of a successful lawsuit be properly protected.

Directors and Officers for Educators, also known as D&O Liability Insurance, covers non-bodily injury claims such as those related to mistreatment or mismanagement of funds. It can provide coverage for legal fees and proper indemnification for the target exposures. Unlike general liability insurance, the policies of this form of insurance vary greatly. When determining which D&O Insurance is most suitable for your educational institution, consider the following three questions:

  1. Who is Covered Under the Policy?
    Policies typically cover a few key employees, including the organization’s directors and officers, but they might not cover volunteers.
  2. What is Excluded From the Policy?
    Most policies do not cover non-monetary claims or employment related claims.
  3. Who is the Insurance Underwriter?
    Investigate the insurance company’s underwriter and their longstanding reputation for financial integrity.

In addition to these three basic questions, it is advisable to find a liability insurance company that specializes in directors and Officers for Educators. Be sure to take the time to find an insurance company that you can trust to help protect you against potential allegations that could lead to financial ruin without the proper coverage.