Products & Services


NTCA/Telcom Insurance Group D&O Program

Since September of 2004, Telcom Insurance Group became the only endorsed provider for the NTCA’s Directors and Officers Liability Insurance Program, which is commonly called Executive Liability coverage. This appointment continues to provide one streamline outlet of education, loss prevention, and insurance product for the members who support the NTCA program. With this in mind, we at Telcom will work hard on your behalf to provide the best coverage at the best premium possible with one of our D&O carriers. All indications are that both of these areas are being well served already! Since September 2004 our D&O family has nearly doubled. Please read on to see why you would benefit from our program.

Take a look at the coverage enhancements available through our program.

The following is a description of our D&O product and the services associated with it that are available to members of the National Telephone Cooperative Association through Telcom Insurance Group.

  • All policies will be written on company paper that is, A.M. Best rated A (Excellent) or better for financial strength and claims paying ability
  • Program pricing and two-year policy terms for eligible insureds is an option
  • Expert claims service provided by experienced, specialized claim staff – dedicated Executive Liability claim unit
  • Availability of comprehensive crime coverage as part of the policy or on a stand-alone basis
  • Risk Management PLUS+ OnlineSM – a state-of-the-art, web based tool for controlling employment and ERISA/fiduciary exposures – includes such features as on-line training for supervisors (sexual harassment and employee terminations), no cost general legal advice via retained law firm’s “800” hotline. The firm is Jackson Lewis.

Coverage Highlights

Common Terms and Conditions

  • Amended definition of discrimination, including failure to hire a claimant due to membership in a class which is alleged to have legally protected status
  • Amended definition of employee to include volunteers, leased, seasonal and temporary workers
  • Amended definition of wrongful employment practice to include violation of the Family Medical Leave Act and any failure to create or enforce adequate workplace or employment policies and procedures
  • Amended automatic acquisition threshold from 10% of the parent corporation’s total assets to 25%
  • Amended knowledge of claim or loss language – Risk Manager, Chief Financial Officer, Director or Officer, Legal Counsel, head of Human Resources
  • Amended severability of exclusions – more favorable imputation of liability language for innocent parties
  • Non-Rescindable A, B and C insuring agreements
  • Option to Select Attorney with prior approval
  • Separate Limits Available

Employment Practices Liability Coverage Part

  • Expanded definition of discrimination covers any claim based on violation of employment discrimination law or disparate treatment
  • Coverage for liquidated damages awarded under the Age Discrimination in Employment Act and the Equal Pay Act as well as damages measured by the value of stock options or other employee benefits
  • Punitive damages – covered if insurable under the applicable law most favorable on the issue of insurability
  • Coverage for claims brought by independent contractors, leased employees and volunteers
  • Third party coverage included for discrimination and sexual harassment
  • 10% reduction in the deductible/retention if the insured accepts first settlement offer
  • Settlement clause provides insured with coverage for 80% of damages and defense expenses in excess of settlement offer rejected by insured
  • Risk Management PLUS+ OnlineSM for Employment Practices – interactive training on employment issued delivered via internet; free unlimited access to employment attorneys
  • Wage and Hour Claims – Defense Only/$100,000

Directors & Officers Liability Coverage Part

  • Additional dedicated $500,000 limit provided for non-indemnifiable claims (A side additional limit)
  • Entity coverage
  • Full prior acts coverage generally provided
  • Marital estate extension
  • Punitive damages – covered if insurable under the applicable law most favorable on the issue of insurability
  • Reimbursement of retention upon finding of no liability – available to insureds carrying a retention of $25,000 or less
  • Outside directorship liability included for 501(c)(3) organizations
  • Amend insured vs. insured exclusion – carveback for claims by receiver, liquidator

Fiduciary Liability Coverage Part

  • Dedicated $1,000,000 additional defense costs limit – in addition to the fiduciary coverage part limit of liability
  • Omnibus welfare plan coverage (health, dental, life, etc.)
  • Civil penalties assessed due to violation of the privacy provisions of the Health Insurance Portability and Accountability Act (HIPAA) – $25,000 aggregate limit
  • Amended definition of claim – includes fact finding investigation by the Department of Labor or Pension Benefit Guarantee Corporation
  • Defense coverage provided for benefits due claims
  • Risk Management PLUS+ OnlineSM for Fiduciary Liability – interactive training on benefits issues delivered via the internet, includes free access to ERISA attorneys

Fidelity/Employee Dishonesty Coverage Part

  • In addition to comprehensive employee theft coverage – coverage available for forgery (includes personal account coverage), money & securities, computer and funds transfer fraud as well as counterfeit currency and money orders
  • Up to $5,000 to hire an independent outside accounting service to determine the amount of a loss
  • Broad definition of employee includes those that are leased, volunteers and former employees (for up to 60 days); also includes those who handle employee benefit plans
  • Investigative costs coverage available – provides an additional limit of liability for expenses incurred in establishing the existence and amount of a loss
  • Third party fidelity coverage is available, which provides an additional limit of liability to protect your client’s property from loss at the hands of your employees
  • Discovery based coverage available which provides coverage on a discovery basis instead of loss sustained

This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations.

There are three major coverage parts

Directors and Officers

This coverage protects the Directors/Officers and Managers for claims they did not fulfill the duties of the position.

  • Duty to Care
  • Duty of Loyalty
  • Duty of Obedience
  • Statutory Duties Director and Officer and Entity Coverage
  • Coverage A- Protects Directors that are not indemnified by the Entity
  • Coverage B- Covers the Entities obligation to indemnify the Directors and Officers via by-laws or state law
  • Entity Coverage- Protects the entity itself

Fiduciary Liability Coverage

  • Wrongful Act…any violation of responsibility or duty as defined by ERISA.
  • Coverage protects the plan sponsor, the plan itself and any administrator of it for wrongful acts. Broad definition includes coverage from breach of fiduciary duty under ERISA, COBRA and other similar laws; matters claimed because of an insured’s status as a plan fiduciary; errors and omissions in the administration of employee benefits
  • ERISA defines a fiduciary as any person exercising any discretionary authority or control of the management or administration of a retirement plan or assets.
  • With the enactment of the Employee Retirement Income Security Act (ERISA) in 1974, fiduciaries assumed new responsibilities relating to the management and administration of employee benefit plans.
  • Many fiduciaries believe that the plan or their employer will indemnify them for any losses caused by negligence or breach of fiduciary duty and relieve them of the personal liability. Every plan fiduciary should be aware that the ERISA specifically prohibits the plan or the plan sponsor from relieving fiduciaries of their personal liability. However, the plan, the plan sponsor or the fiduciaries may purchase insurance to cover their risk.

Employment Practices Liability

Broad definition of wrongful employment practice includes coverage for workplace harassment, discrimination, retaliation, breach of employment agreement, wrongful termination, invasion of privacy and failure to create or enforce adequate employment policies and procedures.

  • Protection against claims from employees-
  • Wrongful dismissal
  • Violation of Employment Laws
  • Sexual and Workplace Harassment
  • Discrimination
  • Failure to Employ or Promote
  • Wrongful Discipline
  • Failure to Grant Tenure
  • Negligent Evaluations
  • Failure to Provide Adequate Work Conditions

If you would like more information regarding the Directors and Officers program, please contact your Telcom Account Representative, if you are already a policyholder. If you are new to Telcom, please contact Tisa Smith about D&O policies. Her contact information is or 800-222-4664.