|
|
Frequently Asked Questions
|
|
Q.
|
Why do we need this insurance?
|
|
A.
|
The number of lawsuits is rising. And defense costs tend to be very high ... even in successfully defended cases ... even in cases where your child care center has done nothing wrong. Having Directors & Officers Employment Practices Liability (D&O/EPL) insurance protects the assets of your center and your staff and volunteers. This kind of security can help you attract and keep competent and qualified people, and it allows you to do your job properly.
|
|
|
Q.
|
Do I need this insurance if we have general liability insurance?
|
|
A.
|
Yes, you are still vulnerable even if you have other kinds of liability insurance. Most general liability insurance doesn't cover employment-related actions and other kinds of claims against your board.
|
|
|
Q.
|
What are some examples of claims brought against Directors & Officers?
|
|
A.
|
Here are a few examples:
- A candidate for a position at a child care center sues claiming a less qualified candidate has been hired
instead
- A child care center director is accused by a parent of failing to provide adequate supervision of an employee caring for her daughter. The parent believes the employee has been reading inappropriate books to the children.
- A former employee of a child care center alleges that she was fired because she is 65 years old, even though she believes she is still able to perform her job. She brings a wrongful termination suit against the center claiming that she was discriminated against on the basis of
age.
|
|
|
Q.
|
Who is covered?
|
|
A.
|
All directors, officers and employees, including staff, volunteers and committee members are covered. The policy also protects the assets of the child care center itself.
|
|
|
Q.
|
How much coverage can we purchase?
|
|
A.
|
The coverage limits are $500,000 or $1,000,000.
|
|
|
Q.
|
What is the retention (deductible)?
|
|
A.
|
$1,000
|
|
|
Q.
|
How much does it cost?
|
|
A.
|
Coverage is quoted on a case-by-case basis depending on the information you
provide about your child care center. Members of NAEYC receive special rates,
and NAEYC-accredited centers will be eligible for additional credits.
|
|
|
Q.
|
Can our coverage be canceled?
|
|
A.
|
The carrier cannot cancel coverage during the policy year except for non-payment
of premium.
|
|
|
Q.
|
What if our state has volunteer protection laws?
|
|
A.
|
Most volunteer protection laws cover individuals, but would not protect your
organization, and they do not prohibit the most common types of employment-related
claims.
|
|
|
|
