Q&A: Separate But Equal?

Q Our co-op has a question about our various insurance policies. Our insurance agent has recommended to the board that we keep our Directors & Officers (D&O) coverage separate from our general liability coverage. I understand that some commercial general liability policies include D&O, so is there a standard approach or policy for this type of scenario?

— Manhattan Board Member

A "The answer depends on whether the D&O attached to the Master policy as an endorsement includes EPLI (Employment Practices Liability Insurance),” according to Sal Sciallo, an insurance agent with State Farm Insurance in Manalapan, New Jersey. “Usually when attached as a endorsement it does not. In addition, it may not include other fringe coverages that a separate D&O policy may include.

“If there are no employees and/or payroll that will be insignificant. If there are employees and/or payroll, I would suggest a separate D&O policy separate from the [general liability] which includes EPLI."

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