As a director or officer of an equestrian organization, it’s your responsibility to represent all your organization’s members. Your members expect you to carry out your duties in the best interest of the organization in an honest and legal manner.
What you’ll discover in this report:
- The reason for equestrian directors and officers’ liability insurance.
- Who can make a claim against your directors and officers
- How equestrian directors and officers liability differs from other liability insurance
- Common claimants
- How directors and officers liability insurance is different than professional liability and errors and omissions insurance
Why Do I Need Directors and Officers Liability Insurance?
If you and other directors or officers are named in a lawsuit in your capacity as an executive team, you would be held responsible for defense expenses and financial damages or any settlements. Without directors’ and officers’ liability insurance, you would put your personal assets at risk.
This insurance doesn’t only cover legal defenses, but also covers you against any damage claims.
How Are Our Directors and Officers Exposed to Liability?
Liability generally comes in two forms for directors and officers: a violation of duties or breach of loyalty.
Directors and officers could be accused of failing to manage and supervise the activities of the organization, neglecting and wasting the assets (which can include improper investments), or improperly delegating authority. All of these would be considered a violation of duties of care or diligence.
A breach of loyalty could include:
- Sales or purchase of goods to the organization by you or any other director or officer
- Taking corporate opportunities
- Self-dealing
- Fees and commissions to brokerage firms, banks or other suppliers of services if you or any director or officer has a relationship with them
- Other conflicts of interest
Who Could Make a Claim?
There are generally eight categories of claimants:
- The general public
- Donors
- Those who benefit from the organization’s services
- Members of the organization
- Other directors and trustees
- The corporation
- The Attorney General in the interest of the public
- Government agencies asserting tax claims or other violations
How Is Directors and Officers Insurance Different From Other Types of Liability Insurance?
Directors and officers liability insurance applies to how the executive team performs its duties. Professional liability or errors and omissions insurance deals with products and services, and whether they perform properly, or if there was negligence in preparing the product or delivering the service.
Directors and officers liability insurance also doesn’t cover physical injury claims (like general liability). It covers “non-bodily injury claims,” which could include employment-related claims or the mismanagement of funds.
Get Equestrian Directors and Officers Liability Insurance Today
At Henry Equestrian, Powered by NFP, we understand you give your time to your organization because you love horses. We want to make sure you and your fellow directors and officers are covered. Whether you have questions about filing a claim or want to learn more about our offerings, contact us to or click below for a free, no-obligation quote.