Lloyd’s of London has refused to renew NRA director’s E & O policy, when it expires in two months. NRA has responded by creating a special (and inadequate) fund from members’ money to tide it over until it can find someone, somewhere, who is willing to issue coverage. That it was Lloyd’s to begin with tells you something, they specialize in issuing very high-risk policies, in exchange for high premiums. When they say “no way!” you know the risks are sky high. As Judge Journey says in the article,” if Lloyd’s won’t insure you, who the hell will?” The board will probably go into the annual meeting in September “riding bare back.” There is a certain justice here, of course.
E&O policies are coverage for directors screwing up and getting sued for breach of fiduciary duty and that sort of thing. Sued for millions or tens of millions, and soon without insurance protection. As might happen to a board which has spent tens of millions in legal fees, ratified an insane bankruptcy, ignored officers’ squandering of members’ money, hasn’t investigated its former treasurer even after he took the Fifth dozens of times when being questioned, and things like that. Directors should be reflecting … you might just lose your house and have to file for personal bankruptcy over your decisions.