Directors' & Officers' Liability
D&O

What is Directors' & Officers' Liability (D&O) insurance?

Directors' and Officers' Liability (D&O) is a form of insurance that provides coverage to directors and officers for claims that are made against them while they are serving in their capacity on a board of directors or as an officer.

This insurance can be written to cover directors and officers of profit-making businesses, privately-held firms, non-profit organizations, and educational institutions. Essentially, D&O liability insurance acts as a type of "management errors and omissions liability insurance," which covers claims that result from managerial decisions that lead to negative financial consequences.

What is included in a Directors' and Officers' Liability policy?

A Directors' and Officers' Liability (D&O) policy typically provides coverage for legal expenses and financial damages that arise from claims made against a company's directors and officers. Some examples of situations that may be covered by a D&O policy include claims of mismanagement, breach of fiduciary duty, negligence, errors in judgment, and shareholder lawsuits.

D&O policies may also include coverage for investigations and legal proceedings related to the company's operations. However, it's important to note that each D&O policy is different, and the coverage provided may vary depending on the specific terms and conditions of the policy.

What businesses need Directors' and Officers' Liability (D&O) insurance?

Directors' and Officers' Liability (D&O) insurance is important for any business that has a board of directors or officers. This includes profit-making businesses, privately-held firms, non-profit organizations, and educational institutions. Essentially, any organization with a board of directors or officers can benefit from D&O insurance.

It's particularly important for businesses with publicly traded stock, as these companies are more vulnerable to shareholder lawsuits. However, even small businesses can face claims of mismanagement or breach of fiduciary duty, so it's worth considering D&O insurance regardless of the size of the organization.

Contact an insurance agent for more information

If you need more information on Directors' and Officers' Liability (D&O) insurance, it's always a good idea to consult with an insurance professional who can help you determine the appropriate level of coverage for your business. Our team can help you locate an insurance agent in your area who can provide you with more information about D&O insurance and other types of coverage options. Simply contact us and let us know how we can assist you.