Most public and private officers and directors policies are written as a D&O policy. But there is another to be considered. It is the POL or public official liability. This policy is usually written for municipalities, it can also be written for other governmental agencies. It may be used for many public organizations as long as the organization can be considered “an entity”. Both policies cover wrongful conduct, but wording within the policies may differ greatly.
The definitions of “wrongful conduct” are specifically named within the D&O policy, but not so in the POL. Also the reference within the policies to “any act” or “negligent act” is to be of a major consideration. As a general rule, the more restrictive definition, the smaller the premium which also equates to more constrictive claim payments. The reverse is also true. The broader definition within a policy, the more premium will be paid, to equal larger claim payments. If you have questions regarding your coverage need, please talk with your agent or one of ours.
Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect. Always check with your chosen professional as to statements made in this blog for your particular situation.