My ADA

Association Insurance Issues

I. General Liability Insurance

Q: WHAT TYPE OF CLAIMS DOES GENERAL LIABILITY COVER?

A: The comprehensive liability policy provided via ADA covers the association, executive officers, directors, and employees for bodily injury and property damage liability only. Products liability is also included.

Q: IS GENERAL LIABILITY INSURANCE PROVIDED TO ALL AFFILAITES?

A: Yes, and up until September 2000, affiliates and districts were invoiced for $80 for their share of the coverage. With the implementation of the ADA/Affiliate Agreement, affiliates and districts will be covered and the cost will be deducted from a rebate check.

II. Directors and Officers Liability (D &O)

Q: WHAT IS THE DIFFERNCE BETWEEN GENERAL LIABILITY INSURANCE AND DIRECTORS AND OFFICERS INSURANCE?

A: Directors and Officers insurance is a separate policy from the general liability policy. It extends coverage beyond bodily injury type of coverage that general liability provides. Directors and Officers insurance covers directors, officers and employees, volunteers and committee members of the affiliate association for any actual or alleged error or omission in the discharge of their duties. This policy also includes antitrust and defamation coverage.

Q: WHAT ADDITIONAL PROTECTION DOES DIRECTORS AND OFFICERS INSURANCE COVER?

A: Coverage also includes:

discrimination
sexual harassment
libel
slander
defamation
invasion of privacy
breach of employment contract

Q: WILL DIRECTORS AND OFFICERS INSURANCE BE PROVIDED TO AFFILIATES?

A: ADA has been given the responsibility to negotiate and purchase Directors and Officers insurance as indicated in the ADA/Affiliate Agreement. Cost for this coverage will be deducted from a rebate check.

Q: WHAT ABOUT DISTRICTS?

A: Districts that are governed by their affiliate will also be included in the coverage at no additional cost.