Directors and Officers (D&O) Coverage
On Point.
D&O coverage protects boards of directors and officers against lawsuit expenses. This includes public, private, profit, and non-profit organizations.
If you are working as an officer or director for an organization (public, private, non-profit) you can be held liable and sued personally in potential lawsuits or wrongful allegations – even if you are serving as a volunteer in a non-profit organization. This means that without D&O coverage you are exposed to paying defence costs, settlements and/or judgements.
D&O Coverage is similar to professional liability in that it covers expenses that come as a result of losses or legal defense or indemnification for people serving as directors or officers for the boards of the company or organization that they represent.
Directors and Officers Coverage can cover:
What is a D&O tail policy?
A D&O tail policy is sometimes referred to as run-off coverage or closeout insurance. This covers directors and officers after they are no longer holding office if they are sued as a result of any actions that may have taken place while they were instated.
What is not protected by D&O Coverage?
In most cases, D&O Coverage will not protect against:
- Bodily injury or property damage to third-party.
- Fraud and other criminal activities.
- Penalties and fines.
- Intentional non-compliance.
