D&O Insurance Process Changing

The ACFE has decided to change the process for offering Directors and Officers (D&O) insurance to local chapters.

In previous years, all chapters received an invoice for insurance, and chapters who wanted coverage provided payment for the invoice. Beginning this year, we are asking each of our chapters to affirmatively elect D&O Insurance in order to be covered under the ACFE Global D&O Policy.

D&O Insurance covers claims against the chapter and its officers and directors for any “wrongful act.” “Wrongful act” is generally defined as “any actual or alleged error, misstatement, misleading statement, act, omission, neglect or breach of duty committed, attempted, or allegedly committed or attempted by the chapter or its directors and officers in their capacities as directors and officers.” It does not cover any criminal or deliberate fraudulent acts, or willful violations of statutes or laws.

The total cost of the coverage will be $250, and the policy will be effective from August 1, 2014 to July 31, 2015. Only chapters who elect coverage will receive an invoice and be covered under the D&O Insurance Policy.

Any chapter that does not elect coverage by completing and returning this form by May 15, 2014, will not be included in the policy.

Please note that this is not a general liability or professional liability policy, so it does not provide coverage for bodily injury, property damage, defamation, invasion of privacy, copyright or trademark infringement. The ACFE does not provide general liability or professional liability coverage for local chapters.

As a reminder, if you receive any type of notice of a potential claim, you must immediately contact John Warren, Vice President and General Counsel, at ACFE headquarters in Austin. Failure to do so may result in the denial of the claim by the insurance company.

Please contact Ashley Stone with any questions.