Directors & Officers Insurance

Liability coverage for the directors and officers of a business is essential. It protects them from claims made against them during their time of serving on a board or in the position of officer. Known as D&O insurance, it can be used with all kinds of companies, including non-profits, public and privately held firms and even educational and financial institutions.

Protection of D&O Insurance

Policies under this category provide protection to the directors and officers for decisions they make in their respective roles. These decisions have negative financial results for the company.

This type of policy has some unique features. For one, the policies are written up by a claims basis and do not necessarily cover defense for those who are insured. They also come with shrinking limits, which means that the cost of defense reduces the limits of the policy.

The policy covers monetary damages. However, it doesn’t cover property damage or bodily injury. Those situations are handled under another type of business insurance policy.

Directors and officers can be held personally responsible for the decisions they make. This type of coverage protects their assets in many situations. Some common situations where D&O insurance policies may be necessary include the following:

• Regulatory actions
• Securities litigation
• Breach of fiduciary duties
• Allegations of misrepresentation

Anytime a company is involved in a merger and acquisition or a conflict of interest, they are vulnerable to accusations and claims made against the directors and officers. Signs of financial struggles is another instance of when stakeholders, government officials, customers and even competitors and employees can allege claims of wrongdoing.

To protect yourself in these situations, it’s imperative that you have D&O coverage. If you want to know more about this type of business insurance, contact us today. Let us help you protect your personal assets and those of your spouse and family with the right kind of coverage.