Errors and Omissions Liability Insurance
Liability insurance for “officers and directors errors and omissions” should cover all key areas where liability may be incurred. These include:
- Errors in acts - for example, a board exercised its legal authority to purchase land for a new library building, but later it was revealed that the land was contaminated.
- Acts in excess of the authority - for example, giving a library director an order that conflicts with adopted library policy or procedures.
- Nonfeasance - (Definition: failure to act, especially failure to do what ought to be done.) For example, a board did not deal with a known conflict of interest when the board discussed and voted to award a contract. Failure to meet contractual obligations.
- Negligence - for example, allowing unsafe buildings or grounds to exist, or failure to properly supervise funds.
- Intentional violations of civil law against a person or their property -these may include: discrimination, infliction of mental distress or outrageous conduct; libel and slander; assault and/or battery; invasion of privacy; negligence; fraud or misrepresentation; wrongful discharge of employee.
- Acts in violation of state, federal, or local statutes or regulations, bylaws of the library- for example, authorizing payment of improper expenses, failure to establish policies that follow pertinent rules in employing personnel, not following legal bid procedures.