Directors & Officers Liability Insurance (D&O)

Directors and Officers Insurance coverage, the most important line of defense in a business's Management Liability insurance program. This insurance is broadly written coverage for 'Wrongful Acts' alleged to have been committed by the leaders of an organization. This is insurance which can protect the personal assets of an individual and allow them the decision-making freedom more conducive to a growing and ambitious organization.

What Is Directors and Officers Insurance?

Directors and Officers Insurance covers management and executives for claims made against them while they are serving on a board of directors and/or as an officer of an organization. In layman’s terms, Directors and Officers Insurance covers claims resulting from decisions and actions taken by company managers as part of their job duties. An organization’s officers typically include key executives and managers, but not all employees. Policies cover defense costs and damages arising out of wrongful act allegations and lawsuits brought against an organization’s directors and/or officers.

If you think your General Liability Policy offers the coverage you need, think again: General Liability and Umbrella Insurance don’t cover claims concerning management decisions.

Managers make mistakes and are often held liable for them. Management and executives have to make tough decisions, often based off little information, that can have a huge impact on the business and outside world. No matter how careful or experienced they are, any manager’s actions and decisions can result in losses for an organization or a third party, which can lead to costly litigation. D&O Insurance makes the risk that comes with managerial decision-making manageable and transparent, ensuring that a company’s management has room to make decisions.

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