Understanding the Complexities of Insurance CPP

For most small to mid-sized businesses, bundling a couple of standard property and liability policies is often a good way to go. This is commonly referred to as a business owner’s policy or BOP. But for larger or more specialized businesses, owners should seek out a company that offers a commercial package policy, or cpp insurance, which covers any combination of property, liability, crime and inland marine insurance coverages.

A CPP that includes equipment breakdown coverage will usually cover a wider range of issues that many of these companies often face, plus additional coverage is available to any and all qualified customers. Fortunately, a CPP is designed to add flexibility and customization that might not be offered in a standard business owner’s policy, or BOP. This policy also offers a great advantage to commercial clients that have a business with a higher than average risk, or for those owning the type of business that is generally considered “too unique” to fit into a standard one-size-fits all policy.

Many owners enjoy the benefits of purchasing a CPP

By packaging multiple policies into your cpp insurance, as the policyholder you will often be provided with extended coverage (and/or lower premiums) that you would otherwise not receive were you to purchase each policy individually. By taking advantage of these customized policies, you’re able to make one low payment that covers all necessary items and won’t end up paying for coverage that does not apply to your situation.

It’s equally important to know what’s excluded from your insurance cpp policy as well as knowing what’s protected. Customizable bundles don’t offer a couple of necessary items like workers compensation or directors and officers insurance. Workers Comp is required by law in most states depending on the amount of employees you have and must be purchased as a separate policy.

Directors and officers policies are necessary for non-profit organizations. Group life and disability policies are also separate items, each containing different policy choices and decisions. Think of it this way; policies that can be packaged together include items covering property and liability, as where items that cover people and HR must be purchased separately. When in doubt, ask a qualified independent agent.

Directors and Officers for Non Profit Companies Face Many Serious Risks

It’s become common knowledge that nonprofit organizations, along with its directors and officers (D&O), face many of the same risks as any for-profit board of directors. The one issue they must consider is that they might have even more difficulty defending against claims brought against them.


Some see the fact that non-profits typically don’t have the same level of balance-sheet protection to support against litigation as the only significant difference between a private or public institution. Insurance, in this case, directors and officers for non profit companies is the solution for dealing with this issue.


Personal liability on the forefront of concerns


As their awareness of their exposures on this front increases, more nonprofits are becoming interested in securing D&O liability insurance, and people involved in nonprofits are smart to seek advice on how to approach an agent to find coverage for this growing risk.


It’s important for people thinking about serving on a nonprofit board of directors since they could be facing personal liability risks, and they should be aware of this fact. There is simply too much at risk for those who merely wish to serve, out of the goodness of their heart, on a board of a nonprofit without securing coverage.


The concerns of potential board members can be calmed by a phone call to an agent or broker for a quote. Prospective members should take the time to look at available coverage options before agreeing to sit on the board, and insist that they purchase coverage for this exposure. It also might be a good idea for board members to have a Personal Umbrella policy as well.


Because the organization can be sued for a wrongful act by anyone with any interest in the chapter’s activities, without nonprofit D&O coverage, individual officers could end up paying for their own defense, even if they are proven blameless. The list of possible reasons for a claim is long and growing; especially as government agencies increase their oversight activities of these institutions.


With so much at stake, including employment-related matters, civil-rights issues, fiduciary-duty breaches, fund misappropriation, improper conduct of volunteers or employees, and government claims involving conflicts of interest and antitrust exposure, directors and officers for non profit companies need the added protection for financial security and peace of mind.


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Two Reasons for Educators to Purchase Directors and Officers for Education Insurance

When it comes to education, there are a lot of people that the directors and officers have to deal with. They may deal with the students themselves, their parents, other educators, and so many others. Unfortunately, all of those dealings are not always positive. In the event that something is so negative that it turns into a lawsuit, it is important to have directors and officers for educators insurance. The following are two reasons to purchase a policy that includes this coverage:


  1. With a proper policy, you will not be caught off guard if a student or parent makes a claim against you, your institution, or another educator at the institution. Being held personally responsible for the costs of a claim could be burdensome. Insurance allows the claims to be paid for, and allows you and your educators to get back to educating your students.
  2. Without offering insurance coverage, you may not have many directors and officers who will want to work for the institution. When there is insurance coverage available, you will get some of the best professionals in the industry, because they will feel secure in the job.


As you can see, educational facilities simply cannot run smoothly without proper coverage. Directors and officers for educators insurance is essential to maintaining a successful institution, and keeping satisfied professionals on the job.


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A Primer on the Three Sides of Directors & Officers Insurance


Directors & officers liability coverage has become increasingly essential for companies, whether they are non-profits, privately held, or start-ups preparing for an IPO.

Directors & officers liability coverage has become increasingly essential for companies, whether they are non-profits, privately held, or start-ups preparing for an IPO.

Directors & officers liability coverage has become increasingly essential for companies, whether they are non-profits, privately held, or start-ups preparing for an IPO. Unfortunately, many people who are considering purchasing D&O insurance do not fully understand its three sides of coverage. It is essential that prospective policyholders fully understand these sides so they can purchase policies that are tailored to their specific needs and areas of risk.

Available Coverage

Directors & officers liability coverage can be broken down into three categories:

  • Side A coverage, which protects directors and officers against losing their personal assets if the company cannot cover the cost of indemnification.
  • Side B coverage, which reimburses the expenses a company incurs while paying legal fees and settling claims against its directors and officers.
  • Side C coverage, which provides coverage for the company as a whole in the event that securities-related claims are made.

Each side addresses a distinct risk area that would not be covered by other types of insurance.

Choosing the Ideal Option

When selecting a directors & officers insurance policy, decision-makers should consider the assets of the company and its officers and directors. If the company has limited resources and the directors and officers have substantial assets, Side A coverage may be necessary. If the company faces significant potential liability, Side B and Side C coverage are likely needed. However, decision-makers should always work with an insurance agent to evaluate the three sides of coverage and any complementary policies that can ensure full protection.


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PTOs, PTAs and Directors and Officers Insurance


Directors and Officers (D&O) insurance

Directors and Officers (D&O) insurance

Directors and Officers (D&O) insurance is a type of liability coverage that is a necessary investment in the leaders of schools, universities and other institutes of higher learning from liability claims that can arise during the educational process. It is vital to safeguard these institutions and everyone from teachers to administrators, volunteers, and board members can benefit from the protection and services this policy provides.


These leaders, who often put in a lot of volunteer time in the development of those students that represent the future, are also exposing themselves to great risk when it comes to legal liability issues. Their decisions, when something goes awry and a lawsuit is launched, could be called into question as to why they made those decisions, and if they were aware of the potential for injury, including financial. D&O insurance is designed to respond to allegations regarding management liability issues.


PTOs and PTAs should also be insured


When staging an event, such as a concert, or school carnival, there are exposures and risks that may not have been considered or properly safeguarded against. While most PTO volunteers see a carnival as a festive way to raise money and boost school spirit, from an insurance providers view, that same carnival can spell the possibility of imminent disaster.

Food stands are a potential fire hazard, and rides can malfunction and riders can become extremely ill, or seriously injured. Someone could experience a fatal fall off of one of those rides, and this would lead to someone pointing the finger at those who failed to provide adequate safety to the attending students, friends and families.


Many educational staff seem to think that they are impervious to a lawsuit, simply because they are a volunteer or simply part of a parent group. The trouble with that line of thinking is that anyone can be sued, and parent groups across the country have been named during litigation on several occasions. Lawsuits require attorneys, which, without directors and officers insurance, can be costly to the point of costing some individuals enough money to wind up in bankruptcy court.


And while many parent group leaders assume, or in some instances may be told by a school administrator, that their group is covered by a school or district insurance policy, experts strongly recommend that parent leaders confirm that this is the case.