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association professional liability insurance

An insurance policy that protects nonprofit organizations from claims alleging management negligence, rather than those involving bodily injury (BI) or property damage (PD). Association professional liability insurance is synonymous with nonprofit directors and officers insurance. The forms are similar to, although broader than, those covering the directors and officers of for-profit companies. Unlike the latter, association professional liability policies also cover employment practices liability (EPL) claims, the nonprofit entity, and persons in addition to directors and officers (e.g., employees, volunteers, committee members).

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