This combined package helps cover financial losses from forgery or fraudulent alteration of documents together with liability protection for directors and officers. It is designed for organizations that face both internal financial crime exposures and management liability risks. Typical buyers include small to mid-size corporations, non‑profits, clubs, associations, event organizers and specialty operators.
What is Forgery and Directors and Officers Liability Package?
The package bundles crime protections for forgery, altered instruments, and related dishonest acts with directors and officers (D&O) liability coverage that responds to claims made against company leaders. The intent is to provide a single program that addresses both employee or third‑party financial losses and the legal costs or settlements tied to fiduciary or managerial actions.
Who needs it
Organizations with exposure to negotiable instruments, checks, wire transfers, or signature authority often consider this package. It’s also common for boards and executive teams in associations, clubs, manufacturers, retailers, staffing firms, and contractors to carry D&O protection to address governance, employment, and fiduciary claims.
What it typically covers
Coverage elements vary by insurer, but a combined package commonly includes:
- Forgery and alteration — losses from forged signatures, altered checks, or counterfeit instruments.
- Employee dishonesty or theft — criminal acts by employees that result in financial loss.
- D&O liability — defense and indemnity for claims against directors, officers, and sometimes the company for wrongful acts in management.
- Costs to investigate and defend covered claims, including legal fees and settlements where permitted.
Related protections often coordinated with this package include commercial property, cyber liability, equipment coverage and commercial auto exposure to address broader operational risks. For organizations weighing extensions or endorsements, see the Theft, Disappearance and Destruction & Directors and Officers (D&O) Liability Package for examples of combined crime and D&O offerings and the Computer Fraud and Directors and Officers Liability Package for cyber‑related schemes.
Common exclusions or limitations
Policies typically exclude intentional criminal acts by proven senior officers, certain types of contractual liability, and losses not discovered within a specified reporting period. Professional services errors, regulatory fines, and punitive damages may be limited or excluded depending on the policy language. Policy limits, sublimits for specific crimes, and retention (deductible) levels can also restrict recovery.
Factors that influence cost
Underwriting considers several elements including company size, annual revenue, the number of locations, internal controls, cash handling practices, background checks, past loss history, and the specifics of management governance. Industry and exposure to transportation risks, third‑party vendors, or frequent wire transfers can raise premiums. Insurers may offer tailored endorsements; for guidance on making alterations to coverage, review Enhancing Protection: Alterations to D&O Insurance Crime Packages.
Proof of insurance & compliance
Organizations often need certificates of insurance to show lenders, landlords, or contracting partners that they carry both crime and D&O protection. Keep records of policy numbers, coverage periods, limits, and named insureds, and work with your broker to ensure compliance with contractual requirements.
How to get a quote
To get competitive terms, assemble basic financials, a summary of governance structure, descriptions of internal controls, and loss history. Discuss your needs with a broker or carrier representative and request tailored quotes. If you prefer direct help, talk to your agent who can compare options and recommend appropriate limits and endorsements.
Frequently Asked Questions
What’s the difference between forgery coverage and employee dishonesty?
Forgery covers losses from forged or altered instruments, while employee dishonesty (also called fidelity) covers fraudulent or dishonest acts committed by employees. Policies may include both or define separate sublimits.
Does D&O cover criminal acts by executives?
D&O typically excludes intentional criminal acts proven in court; however, it can cover defense costs for allegations and for unintentional or alleged wrongful acts until wrongdoing is established.
How soon should I report a suspected forgery or theft?
Report suspected losses to your insurer promptly and follow policy reporting requirements. Early reporting helps preserve coverage and supports timely investigation and recovery efforts.
Still have questions? Talk to a local insurance expert.