Directors & Officers Liability Insurance

Organizations of all sizes and sectors depend on their leaders to make crucial decisions. However, regardless of how experienced or dedicated your decision-makers may be, they may still eventually make a mistake. Given the potentially wide-reaching implications of your leaders’ choices, even a slight miscalculation or misjudgment could have significant financial ramifications for themselves and your company. In these situations, a directors and officers (D&O) insurance policy may prove to be an invaluable investment. 

What Is D&O Insurance? 
As its name suggests, D&O insurance primarily provides financial protection for your organization’s leaders and their decisions. This coverage may be capable of insulating directors and officers from losses on a personal level and can also provide resources to help your organization recoup losses or expenses accrued while defending its leaders from allegations of wrongdoing. Such accusations, even if false, can incur significant costs and may be filed by many parties, including the following: 

• Employees
• Vendors
• Investors
• Customers
• Competitors 

• Side A covers the personal assets of directors and officers and responds when an organization is unwilling or unable to indemnify its directors and officers, such as due to having declared bankruptcy.
• Side B is to the benefit of the corporation. It can provide financial assistance to your company when it is able to indemnify directors and officers for legal costs
• Side C coverage, also known as entity coverage, financially protects your organization itself, as well as its corporate assets. 

• Mismanagement
• Misuse of organizational funds
• Reporting errors
• Misrepresentation of company assets
• Fraud
• Violation of workplace laws or regulations
• Theft of intellectual property
• Breach of fiduciary duty 

• Industry
• Age of organization
• Annual revenue
• Company assets
• Debts
• Number of shareholders
• Prior claims history