Directors & Officers Insurance
Directors & Officers Insurance is a great policy to carry if you own a business. Often referred to as D&O Insurance, this coverage protects the personal assets of corporate directors and officers as well as their spouses in the event they are sued personally by an employee, vendor, competitor, customer or other party.
There are a wide variety of instances in which D&O insurance can protect you. Some of those include:
- Breach of fiduciary duty that results in a financial loss or bankruptcy
- Misrepresentation of company assets
- Fraud
- Conflict of interests
- Stealing intellectual property
- Poaching competitors customers
- Negligence in duties
Who Needs Directors & Officers Insurance?
Directors and officers (D&O) liability insurance covers directors and officers and/or their company or organization should they be sued.
Why You Should Have D&O Insurance
D&O Insurance will protect you and your company by covering legal fees, settlements and other costs associated with the risk. Note that illegal acts or illegal activities are generally excluded from D&O coverage.
Is D&O Insurance Expensive?
The cost of D&O Insurance varies depending on several factors including, the type of business you run, your revenue, the amount of coverage you need and what coverage you opt-in for. The best way to find out what your premium will be is to ask a licensed agent in our office to provide you with some quotes from several of the top insurance companies.
Get Your D&O Quote Today
Our licensed staff is ready to help you get multiple quotes for your Directors & Officers Insurance. Because we’re an independent insurance agent we can shop from multiple insurance companies to help you find the right coverage at the right price.
Frequently Asked Questions
What types of claims can Directors and Officers insurance address?
D&O insurance may respond to certain claims alleging mismanagement, breach of duty, conflicts of interest, or other wrongful acts involving organizational decisions. Coverage depends on the policy’s definitions, exclusions, and reporting requirements.
How is D&O insurance different from general liability insurance?
General liability generally focuses on certain bodily injury, property damage, and premises-related claims. D&O insurance is intended for certain allegations involving decisions made by directors, officers, and other organizational leaders.
Do private companies and nonprofit organizations need D&O insurance?
Private businesses and nonprofits can face claims involving leadership decisions, finances, governance, employment, and regulatory matters. Texas organizations should evaluate their structure and operations when considering D&O coverage.
Can D&O insurance cover past directors and officers?
Some policies may provide coverage for eligible former leaders when a claim concerns actions taken during their service. The applicable policy period, reporting date, and other terms can affect whether coverage may apply.
Does D&O insurance cover every lawsuit against a board member?
No. Coverage depends on the allegations and policy language. Claims involving fraud, personal profit, prior knowledge, bodily injury, property damage, or other excluded conduct may be limited or excluded.