It has been pointed out many times in the past that the liability coverage available under the Master Liability Program does not provide D&O or Employment Practices coverage. Under a D&O/Employment Practices policy, the D&O portion provides protection for allegations of wrong doing that may include claims of discrimination with regards to the membership selection process; negligent acts; breach of duty; or errors and omissions related to the management of the Lodge. The Employment Practices portion provides personal injury coverage for employment related claims and includes coverage for sexual harassment, discrimination, and wrongful discharge.

This coverage is now available, to a greater or lesser extent, under many policy forms issued locally. However, we believe that the plan offered by Aon Affinity Services gives the broadest coverage and also provides a special discounted premium for Local Lodges.

This coverage will provide all officers and directors (including trustees) with an immediate defense, not just a possible promise of later reimbursement of expenses. This form also provides coverage and defense to the Lodge entity. Under many other policy forms, the carrier is only required to reimburse expenses after the fact, and many also only provide coverage on individual officers or directors leaving the Lodge to pay for its own defense if it is named as a defendant.

The decision of whether a Local Lodge needs this coverage is one that must be made by the individual Lodge; however, we do strongly urge each Lodge to review its own circumstances in order to properly assess potential exposures. If any Lodge has employees; substantial operations; significant property holdings; or substantial assets, it is suggested that a close review be conducted to determine if this protection is needed and a quote for such coverage be obtained. Without D&O/Employment Practice coverage, the individual assets of officers and/or members could be in jeopardy.

Contact Deborah Downey of Aon Affinity Services at 800-421-3557 with any questions or concerns or to get a quote.

Directors & Officers (D&O) Insurance and Employment Practices Insurance Overview

All Lodges should have Directors & Officers Insurance and Employment Practices Insurance and now is a great time to contact Aon and get a quote if your Lodge does not have D&O Insurance:

The Lodge is covered for allegations of many types of wrongful acts

There is also coverage for Directors, Officers and Trustees who are sued individually

Protection for claims that improper decisions were made in Lodge operations

Defends against lawsuits for libel, slander and defamation

Covers discrimination claims based on age, sex or race

Defends wrongful termination lawsuits filed by former employees

Provides coverage for employment harassment claims and suits

Shields the personal assets of Directors, Officers and Trustees who are sued individually

Pays the professional fees of a lawyer to represent the Directors, Officers or Trustees

The legal fees to defend the Lodge are covered by the insurance policy