The Nonprofit
A nonprofit focused on animal welfare.
The Situation
A nonprofit was sued by a builder for breach of a construction project contract, claiming unpaid contract damages. Breach of contract claims are generally not covered in D&O policies, but NIA’s forms contain an annual $250,000 aggregate defense-cost-only enhancement. Using that enhancement, NIA was able to retain an experienced defense attorney for the nonprofit.
The Resolution
It took defense fees and costs to get the case into a settlement posture. The nonprofit was able to obtain a very favorable compromise on the contract damage issues.
From the Claims Files stories like the one above are intended to be informational in nature. Coverage will vary depending on language specific to your policy and your specific facts and circumstances.
Please contact your insurance broker and/or agent for your specific coverage implications based on your specific situation and follow any claims reporting procedures from your policy with your broker if there might be a claim.
Nothing in this story should be considered as legal advice or opinion and you should seek independent advice or legal counsel.