Product Information


Summary

The NADCO Professional Management Liability Insurance Program, administered by Alliant Insurance Services is customized to address the specific exposures faced by CDCs. Unique among other liability plans, our custom program covers:

  • Directors and officers liability (D&O): Protects the day-to-day operations of a CDC, its present and future directors, officers, employees, trustees, and volunteers.
  • Employment practices liability insurance (EPLI): Protects against employee and volunteer lawsuits with claims such as wrongful termination, discrimination, harassment, sexual harassment, breach of contract, and others.
  • Professional liability (E&O): Protects against claims alleging errors, omissions, negligence, breach of duty, and other similar acts (including but not limited to the originating, placing, closing, administering and servicing of the SBA 504 loan program or similar federal, state, or local loan programs).

 

Product Specifics

The NADCO Member Insurance Policy provides directors and officers liability insurance, employment practices liability insurance, and professional liability insurance.

The NADCO CDC Plus Policy provides additional enhancements, such as:

Broader Definition of Insured

Includes parties such as the entity/organization, past, present or future directors, officers, trustees, employees, volunteers, committee members, heirs, leased employees, and independent contractors.

Range of Limits Available

D&O/EPLI: $1M to $5M*

E&O: $1M to $5M*

* Limits of liability may be available in excess of these limits.

 

Affordable Rates

The carrier has established specially discounted program premiums built on financial statements, the organization’s business activities, and employee information.

 

Key Individual Replacement

Provides coverage should a Chief Executive Officer or Executive Director suffer a fatal injury while under the policy.

 

Other Policy Benefits

SBA & NADCO approved policy form

Broad definition of professional wrongful act

No anti-trust exclusion

Coverage for personal injury

20-day cancellation notice to SBA

Coverage extension to non-SBA related loan servicing activities (subject to underwriter approval)

 

Loss Assistance Hotline

Receive two free hours of legal consultation with skilled attorneys on matters related to any potential claim.

 



NOTE: This is only a partial description of the policy. Policy coverages and benefits are subject to the terms, conditions, and exclusions contained in the policy. If any conflict exists between these highlights and the policy, the policy will govern. For complete provisions, including exclusions, please refer to the policy itself.


 

 

What is directors and officers liability insurance?

Who is covered?

Is Employment Practices Liability Covered?

Does the plan provide Professional Liability Insurance?

Why do I need insurance?

What is directors and officers liability insurance?

Directors and officers (D&O) liability insurance protects corporate directors and officers against allegations that they performed their duties improperly. “Wrongful acts" might include actual or alleged errors, omissions, misleading statements, negligence, or breach of duty.


Who is covered under the NADCO Plan?

Directors, officers, committee members, employees, volunteers, and independent contractors are protected.


Is Employment Practices Liability Covered?

Yes, it is covered. Employment practices liability insurance (EPLI) protects against employee and volunteer lawsuits with claims such as wrongful termination, discrimination, harassment, sexual harassment, breach of contract, and others.


Does the plan provide Professional Liability Insurance?

Yes, the plan covers professional liability insurance. Commonly referred to as errors and omissions insurance (E&O Insurance), professional liability insurance protects against claims alleging errors, omissions, negligence, breach of duty, and other similar acts. 


Why do I need insurance? 
 
When you face a lawsuit, the costs can be staggering. Even if you are found not liable, the associated legal fees can pose a significant financial burden to your organization. Professional liability insurance provides vital financial support that will mitigate the financial burden of the legal process. Please note that this coverage will not diminish the likelihood of a potential lawsuit against your organization, but will ensure you are more prepared should one occur.  

In addition, it’s important to note that having professional liability insurance does not make you any more likely to be sued than if you did not carry coverage. It simply makes you more prepared if a lawsuit is brought against you.


 

To apply for the NADCO Professional Management Liability Insurance Policy the following information is required:

  1. Completed, signed & dated Insurance Application
  2. Organizations statement of qualifications including resumes of all key (technical) personnel along with any available marketing material or company brochures
  3. Copy of Associations Bylaws or Articles of Incorporation
  4. Copy of CPA audit including subsidiary (if applicable)
  5. List of Board of Directors

Click here to fill out the NADCO Application (fillable)

Click here for the Cyber Liability Supplement Application