Insurance Protection for Directors and Officers for Educators

Universities, colleges and schools employ teachers, professors and office employees to perform many functions vital to their day-to-day operations and the success of their programs. As a director or officer of the institution overseeing its operation, you have duties to perform and are responsible for the performance of the school. You can be found at fault to blame when something goes wrong and the last thing you need is a lawsuit where you are named as the defendant and have no financial backing from your employer, which is why Directors and Officer (D&O) insurance is so critical.

Responsibility of Director & Officer

Directors and officers have a fundamental responsibility to represent prudently the interests of the organization’s members in directing activities of the organization. They are subject to basic principles in performing their duties. One of these principles is that they must act with the care that a reasonably prudent person in a similar position would use under similar circumstances. They must perform their duties in both, good faith, and in a manner they reasonably believe to be in the best interest of the organization. They are required to implement reasonable programs to promote appropriate organizational conduct and to identify improper conduct.

Thankfully all institutes of higher learning, regardless of their size, generally carry some type of coverage in the form of Directors and Officers (D&O) for educators because without it they would have limited resources to financially protect their directors and officers from potential litigation settlements that may be costly.

In addition to the school’s assets, the personal assets of the directors, officers, and employees may also be at risk in various claim situations. D&O policies, many of which include Employment Practices Liability Insurance (EPLI), are specially designed to offer expanded protection for the ever-changing needs of schools. That said, your employers provide Directors and Officers for educators because it is in the best interests of all concerned.




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