The NADCO Management Liability Insurance Program, administered by Alliant Insurance Services, is customized to address the specific exposures faced by Certified Development Companies.

Unique among other liability plans, our custom program covers:

• Directors and Officers Liability Insurance (D&O): Protects the day-to-day operations of a CDC, its previous, present and future directors, officers, employees, trustees, and volunteers.
• Employment Practices Liability Insurance (EPLI): Protects against employee and volunteer lawsuits with claims such as wrongful termination, discrimination, harassment, sexual harassment, breach of contract, and others.
• Professional Liability Insurance (E&O): Protects against claims alleging errors, omissions, negligence, breach of duty, and other similar acts (including but not limited to the originating, placing, closing, administering, and servicing of the SBA 504 loan program or similar federal, state, or local loan programs).
• Cyber Liability Insurance (Limited): Protects the insured from claims made against them for defense costs and damages arising from a breach of their networks, and coverage is designed to mitigate losses from a variety of cyber incidents. Coverage includes data breach and first party costs, network security and privacy liability, cyber/network extortion, and social engineering fraud. Note, this coverage is part of the D&O and E&O policy form and is limited in nature compared to a stand-alone cyber policy. If a stand-alone cyber policy is needed, please go to the Stand-Alone Cyber Liability Insurance tab in the next section.

Product Specifics:

• The NADCO Member Insurance Policy provides directors and officers liability, employment practices liability, professional (errors & omissions) liability, and cyber liability.
• The NADCO CDC Plus Policy provides additional enhancements, such as:
  • Broader Definition of Insured
  • Includes parties such as the entity/organization, past, present or future directors, officers, trustees, employees, volunteers, committee members, heirs, leased employees, and independent contractors.

Range of Limits Available:

• D&O/EPLI: $1M to $5M*
• E&O: $1M to $5M*
• Cyber: $250K, $500K, $1M

* Limits of liability may be available in excess of these limits.

Affordable Rates:

• The carrier has established specially discounted program premiums built on financial statements, the organization’s business activities, and employee information.

Other Policy Benefits:

• SBA & NADCO approved policy form
• Broad definition of professional wrongful act
• No anti-trust exclusion
• 20-day cancellation notice to SBA
• Coverage extension to non-SBA related loan servicing activities (subject to underwriter approval)
• Broad definition of professional services including the ability to expand the definition per your specific services that are offered

In today's digital age, cyber liability has become a critical risk for businesses of all sizes. Cyber threats are growing in frequency and complexity, making it essential to have a highly specialized and technical professional focused on evaluating and securing the proper coverage for your business. Such an expert can help you navigate the complexities of cyber liability insurance, which is designed to protect the insured entities and individuals from claims made against them for defense costs and damages arising from a breach of their networks or the wrongful dissemination of private material.

In addition to its traditional coverage, cyber liability insurance also includes an invaluable "first party" element, which covers the costs incurred by an insured entity upon discovering a breach. This coverage helps businesses manage the financial impact of a breach, including the costs of notifying customers, forensic investigations, and public relations efforts.

Given the sensitivity of the information that organizations hold or are responsible for, including sensitive employee and customer data, this exposure is ever-present. Therefore, businesses must be proactive in managing their liability risk by obtaining appropriate coverage and working with knowledgeable professionals to develop robust risk management plans.

Cyber Liability Policy Coverage:

• Data Breach and First Party Costs: Covers defined expenses commonly associated with a data breach. This includes costs associated with data breach counsel, computer forensics analysis, privacy regulations compliance, notification and credit monitoring services for affected individuals, and public relations or crisis management services to restore a company’s reputation.
• Network Security and Privacy Liability: Covers liability of the organization arising out of the failure of network security, including unauthorized access or unauthorized use of corporate systems, a denial of service attack, or transmission of malicious code. Internet media liability Covers infringement of copyright or trademark, invasion of privacy, libel, slander, plagiarism, or negligence arising out of the content on the organization’s website.
• Cyber/Network Extortion: Covers monies and associated expenses arising out of a criminal extortion threat to release sensitive information or gain unauthorized access to a network.
• Business Interruption: Covers lost income or extra expenses in the event that the network is inaccessible for an extended period of time.
• Digital Asset Restoration Costs: Coverage covers costs incurred to replace, restore, or recollect data and/or network resources lost or destroyed resulting from unauthorized access to the system.
• Regulatory Coverage: Provides coverage for regulatory proceedings brought by a government agency alleging the violation of any state, federal, or foreign identity theft or privacy protection legislation.
• Cyber Terrorism Coverage: Covering financial damages an insured is legally liable for arising from an act that is certified by the Secretary of the Treasury to be an act of terrorism pursuant to the federal Terrorism Risk Insurance Act.
• Payment Card Industry Standards Compliance Coverage: Covers damages as well as payment card loss, which the insured is legally obligated to pay resulting from non-compliance with the payment card industry data security standard.
• Social Engineering Fraud: Social engineering fraud, or “fraudulent inducement,” is an emerging risk gaining widespread attention in the marketplace. This exposure is often addressed under a crime of fidelity policy, however, has potential overlap and implications to cyber risk. This coverage provides for indemnification of the loss of monies and securities caused by a fraudulent inducement to transfer funds to a third party purporting to be a customer or vendor.

Stand-Alone Cyber Liability Insurance:

Alliant is pleased to offer a stand-alone cyber liability policy. We have this option for contracts that require higher limits and broader coverage beyond what we can offer inside the program.

To apply for the Alliant Stand-Alone Cyber Insurance Policy, please follow the instructions below.

Beazley Cyber Application

Alliant Ransomware Questionnaire Application

Alliant Supplemental Underwriting Questions Due To SolarWinds

Directions:

1. Download and Save the PDF Applications Above
2. Complete the Application Entirely
3. Submit the Application to nadco-questions@alliant.com 

• General liability insurance: Insurance protection in the event a visitor to your organization suffers an injury while on your property.
• Business auto insurance: Provides unique coverage for vehicles owned and being used by volunteers or staff for your nonprofit organization.
• Commercial property insurance: Provides coverage if your building and contents are destroyed by a fire, vandalism, or theft.
• Cyber liability insurance: Provides a broad range of coverage for the loss of electronic information, such as customers’ banking information, social security numbers, or other information vital to your business.
• Employee dishonesty/crime coverage: Provides protection in the event that an employee forges a check or steals money.
• Fiduciary liability Insurance: Provides coverage if a claim arises from the breach of fiduciary duties or mismanagement of employee benefits, such as retirement/pension plans, savings, profit sharing, or health/welfare plans.

CDCs face a wide range of unique exposures. Your board of directors is critical to your organization’s operation and finances. Accusations of misconduct, abuse of funds, wrongful termination, and employee discrimination can put the personal assets of your directors and officers at risk.

CDC claims may be based on, but not limited to, the following:

• Wrongful termination, failure to promote, discrimination
• Mischaracterization of an interest rate
• Allegations of delays in processing/closing the loan
• Breach of the truth in Lending Act
• Discrimination arising from the denial of loan
• Personal injury
• Defamation
• Failure to safeguard personal and confidential information