Freedom Specialty Insurance

No presumptive indemnification (coverage applies without any deductible if the entity rightly or wrongly refuses, or is financially unable, to indemnify)
If an excess policy, there is full Difference in Conditions Coverage if underlying insurance rescinds coverage, wrongfully refuses to cover the loss, is financially unable to pay the loss, is not liable for the loss, or is subject to an automatic bankruptcy stay
Broad definition of “claim” includes oral or written demands, civil and criminal proceedings, arbitrations, and administrative and regulatory proceedings and investigations
Broad definition of “claim” also includes formal and informal interviews of independent directors by any governmental or self-regulatory authority
Broad definition of “entity” includes 501(c)(3) entities sponsored exclusively by the entity and foundations, charitable trusts, or political action committees the entity controls
Broad definition of “independent director” includes:
- Any person elected or appointed a nonemployee director
- An extension of coverage to spouses and domestic partners of independent directors
Blanket Nonprofit Outside Position Coverage
Broad definition of “wrongful act” includes service or status as fiduciaries of employee benefit plan sponsored solely by the entity
Broad definition of “loss” expressly includes:
- Punitive, exemplary, and multiple damages when insurable under the applicable law most favorable to the insured
- Loss from claims under Section 11 and 12 of the Securities Act of 1933
- Penalties under the Foreign Corrupt Practices Act