Employment Practices – Coverage is provided for wrongful termination of an employee, breach of any oral or written contract, violation of employment discrimination laws (including harassment), wrongful failure to employ or promote, employment related wrongful infliction of emotional distress.
Disciplinary Practices – The club itself and its Board of Directors would be provided coverage for suits brought against them as a result of disciplinary reasons. Parents sue the club and coach alleging the athlete’s chances of making a meet cut or qualifying time was impeded due to disciplinary action.
Membership Denial – We have a claim currently resulting from a club denying membership to a family. The club does have a right to deny membership. However, suit was brought against the club for the denial. The D&O policy is defending this claim.
Reports of Occurrence (ROO) – We had a situation where a club had not filed a Report of Occurrence on an incident that happened in April 1995. The injured party had surgery to repair a tendon. The parent’s primary insurance carrier did not pay for the majority of the expense for the surgery. The surgeon ended up turning the family over to a collection agency. Interest, fees and court costs amounted to over $2,500. The family brought suit against the club for failing to file the ROO in a timely manner as the Secondary Accident coverage would have picked up the unpaid amount due to the surgeon.
Financial Matters – Of course, one of the major coverage parts provided by a D&O policy is for bad investment decisions. Most of the member clubs do not have enough money to be concerned about this aspect of coverage. This is the coverage part of the D&O under which the RTC and Government were able to recoup some of the losses resulting from the savings and loan failures (bad real estate investments.)