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Arts Organizations Insurance.

Directors & Officers Insurance

Directors’ and Officers’ Liability (D&O) insurance is a specialized form of professional liability coverage for legal expenses and liability to shareholders, bondholders, creditors or others due to actions or omissions by a director or officer of a corporation or nonprofit organization.

Directors and officers are not liable for an honest mistake of business judgment made with reasonable prudence or care that results in a financial loss; but officers and directors can be held personally liable for actions or omissions made with negligence, recklessness, or bad faith. Directors and officers have a duty to exercise due diligence in overseeing the activities of the organization that they serve.  They are required to act in good faith and in the best interest of the organization.

As the complexities of the legal and business environments in which we operate continually increase, directors’ and officers’ conduct have come under increasing judicial and regulatory scrutiny.

The risk of exposing personal assets of directors and officers can be reduced if effective corporate governance is combined with a risk management program. Although there is no single solution for protecting directors and officers from liability, Directors’ and Officers’ (D&O) Liability insurance is an important tool in mitigating an organizations’ overall exposure.

Most policies have two parts: coverage A – provides direct reimbursement to the directors and officers for third-party claims; coverage B – reimburses the corporation if it is required or permitted, under law or the corporate charter, or by-laws, to indemnify the directors and officers. Coverage is on a claims-made basis.

The number of claims made against directors and officers is increasing exponentially, and overall the current major areas of liability, based on our experience, are the following:

  • Bankruptcy-related claims
  • Employment-related claims
  • Economic torts
  • Breach of fiduciary duty

 Tenants Legal Liability Insurance 

Tenants Legal Liability Insurance (TLL) is usually required for the space you lease that is under your care, custody and control. It is a requirement of most leases and is usually available as part of the CGL.


Multimedia Risk has special insurance programs available for community theatre and professional companies.

Our programs offer liability and property coverage that is designed for the special requirements of theatre / studios and companies. The savings in premium are significant.

Music, dance and theatre companies should conduct an annual safety review of performance space – on-stage, backstage, auditorium, lobby, bathrooms, basement, furnace room, storage areas, scene shop, etc.  Identify potential danger areas and safety deficiencies. Establish a schedule to correct these problems in a timely manner.

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