Euclid Specialty offers customized professional liability coverage for labor unions and labor non-profit entities. Labor entities need unique insurance coverage because their core mission of collective bargaining is typically excluded in standard professional liability insurance policies.
Euclid Specialty offers customized Non-profit D & O insurance for employee benefit plans and other non-profits requiring directors and officers insurance protection from the everyday risks of running a business.
One of the purposes of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA) is to protect union funds and assets from losses caused by improper uses. Section 502(a) requires union officers and employees to be bonded to ensure that unions will be protected against losses caused by an act of fraud or dishonesty by a union officer or employee. The minimum bonding amount for each covered officer or employee is 10 percent of the funds handled by the official and his or her predecessor, if any, during the preceding fiscal year. For a new union, the bond must be at least $1,000 for a local union and not less than $10,000 for other unions or for a trust. The maximum bond required for any one person in any one union or trust is $500,000. However, a person who handles funds for more than one union or trust may be required to be bonded for up to $500,000 for each union or trust.