For Nonprofit Organizations Only - Premium $200
Directors and Officers (D&O) insurance extends a safety net beyond the classic tort, or negligence situation, which might generate a claim against a member organization. Our comprehensive general liability policy offers insurance for an "occurrence" which is generally defined as an act or omission, which gives rise to liability in the area of "torts". A classic illustration of this type of occurrence is a negligence action resulting in personal injury.
D&O coverage will protect the officers and directors of nonprofit clubs and events from certain situations where the member might find itself subjected to a claim as a result of an error in judgment or challenged matter of policy. Some specific illustrations of errors and omissions occurrences are as follows:
- A claim of discrimination against a club as a result if barring a runner from participating in an event (e.g. male runner files a suit when barred from a women’s only race).
- A violation of someone’s constitutional rights as a result of policy or procedure taken by a member club.
- An occurrence of age or disability discrimination.
- A decision by a race director to cancel a race (inclement weather), which results in a monetary loss to a runner.
The RRCA believes that the additional insurance coverage afforded by D&O coverage is very necessary in a day and age when some clubs have already found themselves and their officers subjected to allegations of discrimination, defamation, and sexual harassment as a result of policies and procedure. Even if the claim is a questionable one, to have to defend a tenuous claim in court can generate extraordinary legal expense.
Nonprofit RRCA members are required to carry D&O Insurance. If a member holds a D&O policy with another insurance provider, this fee can be refunded by providing a copy of the insurance certificate to the RRCA. D&O insurance does not extend to for-profit business entities, LLCs, or sole proprietor entities that own and direct races or training programs. Individuals that own races and direct races for a profit are highly encouraged to obtain their own business liability insurance to ensure that their business activities are covered.