Having liability coverage for your Directors & Officers protects your organization from harmful decisions made by past, present or future executives at both for-profit and nonprofit organizations. The damages resulting from wrongful acts committed by executives while operating within your company can be enough to sink a perfectly good organization.
In today’s business climate, directors are often found to be responsible for acts made by the company. Most executives will want to be covered rather than risk their personal assets in defense of their decisions. This type of policy can be a benefit to offer to anyone joining your team.
D & O policies will cover claims from employees, clients, or stockholders that allege:
- Criminal Misconduct
- Administrative Errors
- Civil Disputes
- Regulatory Proceedings based on:
- Acts of Malice
- Errors on the Job
- Neglect, or
- Breach of Duty
How do I know if my company is right for this type of coverage?
Any publicly traded company that has a corporate board or advisory committee should consider Directors & Officers Liability. However, some larger non-profit organizations and private companies can also benefit from the protection offered by D & O Liability insurance.
Is it possible for this type of policy to cover my lower-level employees that also have decision making powers?
Yes, some policies extend this same coverage to other employees. Give our office a call to talk with one of our team members about your specific needs to build a policy that covers everything.
What is the difference between D&O Liability and Professional Liability Insurance?
Directors & Officers Liability Insurance is often confused with Professional Liability Insurance (also known as Errors & Omissions Coverage). It is important to note the differences, because these two policies are NOT the same. Professional Liability applies to performance failures and negligence with respect to the products and services you offer, not the performance and duties of the executive team performing that work.