HANO offers members money-saving D&O program

At the Nov. 1 member meeting, John Flanagan, HANO president and CEO, announced a valuable, money-saving member benefit: Lower cost directors and officers insurance.

The HANO D&O Protection Program will be administered by Earl Hisatomi of the Hawai`i Insurance Consultants agency. State associations in many other states now offer this low-cost coverage, which is provided nationally by Monitor Liabilities Managers, Inc., a wholly owned subsidiary of the W. R. Berkley Corporation, an insurance holding company with assets exceeding $9 billion.

"We expect our members will see significant savings," Flanagan said. "For example, HANO with fewer than ten employees and a budget less than $1 million per year now pays an annual premium of about $2,800 for $1 million in coverage. Our premium under the new HANO program will be less than $1,000 per year, a savings of almost two thirds."

D&O liability insurance gives nonprofit directors and officers the protection they need from personal liability and financial loss arising out of wrongful acts committed or allegedly committed in their corporate capacities, in particular employment practices claims.

It is becoming more common for directors to require that an organization purchase D & O liability insurance before they serve on its board. Actions brought against directors and officers based upon actual or alleged wrongful acts arising from the execution of day to day duties and/or management functions can lead to a D & O claim.

Directors and Officers liability insurance protects the personal assets of directors and officers from catastrophic financial loss in the event of such a claim. Click here for more information about the plan and to contact HIC for a quote.