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:

  • Defense costs for current and former directors and officers, committee members and volunteers, employers, and manager/management companies.

  • Board negligence.

  • Breach of fiduciary duties.

  • Breach of fiduciary duties.

Which business are you?

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.

Does D&O Coverage protect both past
and present directors?

In short, yes. D&O Coverage can cover both current and past directors and officers. As long as the company or organization continues to renew and pay for their insurance; any former directors and officers affiliated with the board can have coverage against potential lawsuits.

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.

Business Insurance – 2 Minute Insights

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