Directors & Officers Liability Insurance Provided By Our Agency

In today's complex operating environment, D&O claims brought by stakeholders such as shareholders, customers, vendors, competitors, suppliers, regulators, and creditors, present increased risk for companies across all industries. In addition, D&O insurance protects the personal assets of those individual directors and officers when the company they serve is unwilling or unable to pay for their defense costs and any settlements or judgments for which they are responsible.

What is Directors & Officers Liability?

Directors & Officers (D&O) Liability Insurance aims to shield those holding these positions from financial harm if one of the company's workers sues them, their suppliers, clients, or third parties. In addition, D&O insurance can cover defense costs, settlements, and costs associated with wrongful acts, allegations, and lawsuits. A corporate risk management strategy must include directors and officers insurance, which can also assist your business in luring and keeping capable executives and board members.

Various claims relating to their positions with the corporation result in lawsuits against directors and officers, including:

Fiduciary duty breach that results in financial losses or bankruptcy

 

• Misrepresenting the assets of the business
• Misuse of business funds
• Fraud
• Disregard for workplace regulations
• Theft of intellectual property
• Poaching of competitor's clients
• Lack of corporate governance

What is covered by Directors & Officers Liability?

Side A Coverage:

Covers directors and officers for defense costs, settlement fees, or judgments if the company cannot repay them, such as if the company has declared bankruptcy.

Side B Coverage:

Covers the company for directors', officers', and employees' losses when the company does indemnify them.

Side C Coverage:

Also called "entity coverage," financially protects the corporation in its own right. Entity coverage may reduce the limits available to protect individual officers and directors.

The Importance of Directors & Officers Liability Insurance

• One cannot overstate the importance of having adequate D&O insurance. It's a common misconception that other liability plans, including general commercial liability, errors, omissions, or other professional liability policies, would cover allegations of misbehavior by directors or companies. In many cases, this is not true.
• Occasionally, misconduct may not fall within an organization's indemnification clause.
• Even if an organization can indemnify its directors and officers for the wrongdoing in question, it may not have the funds to finance the ongoing costs and expenses related to a lawsuit.
• These costs can add up quickly and easily reach six figures.
• Without the financial backing of a D&O insurance policy, an indemnification clause might not adequately protect the directors and officers of the organization.

Contact us today to keep pace with an increasingly complex risk landscape and find the best D&O insurance coverage!