League of American Bicyclists
American Specialty Directors & Officers Liability Insurance Program

Understanding Directors and Officers Liability

The following information is offered to help understand the coverage. However, in order to fully understand the Directors and Officers Liability Policy, the policy should be read and reviewed in detail. The precise coverage afforded is subject to the terms and conditions of the policy issued.

What is Directors and Officers Liability Insurance?

Directors & Officers liability insurance, broadly defined, covers legal costs, judgments and settlements resulting from suits and other legal proceedings brought against the entity’s Board of Directors, Officers, or the insured entity itself for allegations of wrongful acts, errors, and omissions. 

Covered claims can result from exposures such as discrimination against a player, coach or other constituent; wrongful termination of an official, coach, volunteer or referee; mismanagement of funds; or, negligence involving decisions that affect participants, coaches, officials and others. 

Directors & Officers liability insurance can be thought of as malpractice insurance for the organization and those who manage the league or team.

Myths Regarding Liability Insurance
Hypothetical Claims Scenarios

Who is eligible for this coverage?

This coverage, brought to you by the American Specialty Sports & Entertainment Purchasing Group, is only available to non-profit organizations affiliated with sports or recreation organizations.  Also, the annual revenue of the organization must be less than $1,000,000.

If your organization has annual revenues that exceed $1,000,000, please contact American Specialty at 1-800-245-2744 to discuss your coverage options.

Who is the covered person/entity?

  • Board of Directors
  • The organization
  • Volunteers acting on behalf of the organization

What are the limits of coverage?

Directors & Officers   $1,000,000
Employment Practices Liability $1,000,000

Total Policy Annual Aggregate Limit of Liability $1,000,000
An Optional $2,000,000 limit is also available.  

What is claims-made coverage?

Claims-made policies cover claims first made (reported or filed) during the year the policy is in force for any incidents that occur that year or after the Prior and Pending Date specified in the policy, subject to specific policy restrictions. This form of coverage is in contrast to the occurrence policy, which covers an incident occurring while the policy is in force regardless of when the claim arising out of that incident is filed.

Does the policy have a deductible/retention?

Yes, the policy will have a $500 per claim retention for Directors & Officers coverage and a $1,000 per claim retention for Employment Practices Liability.

What is the premium?

Annual premium is $550 (plus $50 Risk Purchasing Group membership fee) for a $1,000,000 policy and $850 (plus $50 Risk Purchasing Group membership fee) for a $2,000,000 policy.

Who is the program insurer?

Philadelphia Indemnity Insurance Company, rated "A+" (Superior) with a financial size category of "X" by A.M. Best.

What are the notable exclusions under this policy?

Bodily Injury and Property Damage
Claims for these exposures are addressed by a General Liability policy.

Profit Exclusion
Claims alleging that an insured gained an unfair profit or advantage to which they were not legally entitled.

Fraud/Dishonesty Exclusion
Claims arising from fraudulent or criminal behavior will not be covered.  However, there may be defense cost coverage for a covered individual up until the point that they are finally adjudicated to have committed such fraudulent or criminal acts.

Pollution Exclusion
Claims arising out of pollution will not be covered.

Breach of Contract
Defense costs are available but the actual value of the contract is not insured.