What is Theft and Directors and Officers Liability Package?
This combined insurance package pairs crime coverage for theft, disappearance and destruction of company property with Directors and Officers (D&O) liability protection for management. It’s designed to protect an organization’s assets and to respond to claims that officers, board members or managers acted improperly in their duties. The package often coordinates commercial liability protection with crime controls and can include coverage for computer-based theft or fraudulent transfers.
Who needs it
Small to mid-size organizations such as clubs, associations, event organizers, retailers, healthcare providers and contractors commonly buy this package. Nonprofits and private companies that handle cash, customer property or sensitive financial data typically find value in combining crime protections with management liability. Organizations that manage events or operate facilities may also need complementary event liability or participant accident coverage.
What it typically covers
Typical elements include:
- Theft, disappearance and destruction of property, including employee theft and internal fraud.
- Directors and officers liability for wrongful acts, fiduciary errors or employment practices claims.
- Computer fraud and funds transfer fraud that results in financial loss; for computer exposures, specialized endorsements may apply — see the Computer Fraud and Directors and Officers Liability Package for more on cyber-specific options.
- Extensions such as forgery, funds transfer fraud, and sometimes property coverage for damaged equipment tied to a criminal act.
Common exclusions or limitations
Policies commonly exclude intentional criminal acts by named insureds, prior-known acts, and some cyber exposures without specific wording. Property damage from ordinary wear and tear, regulatory fines, and certain contractual liabilities may also be limited. Endorsements and alterations can broaden or restrict protection; for guidance on common modifications, review resources like Enhancing Protection: Alterations to D&O Insurance Crime Packages.
Factors that influence cost
Underwriting factors include the organization’s revenue, number of employees, internal controls, history of losses, exposure to transportation risks or commercial auto usage, and whether sensitive financial systems are handled in-house. Risk management considerations such as segregation of duties, background checks, and cyber controls typically reduce premiums. A common risk scenario: an unattended cash drawer at a community event leads to loss and a subsequent claim against management for inadequate supervision.
Proof of insurance & compliance
Certain contracts, venues or regulators may require certificates showing both crime and D&O coverage limits. Carriers can issue proofs of insurance and list additional insureds or certificates upon request; exact requirements vary by state and by the counterparty’s stipulations.
How to get a quote
Gather recent financial statements, loss runs, descriptions of internal controls, and a list of executive officers. When you’re ready to review options and compare carriers, talk to your agent who can help match limits and endorsements to your exposures.
Related resources
For more specialized bundles and examples of combined protections, you may find the Theft, Disappearance and Destruction & Directors and Officers (D&O) Liability Package overview useful.
Frequently Asked Questions
Do crime and D&O always come as a single policy?
No. They can be packaged by a single carrier or written as separate policies. Packaging often simplifies claims coordination but check endorsements carefully.
Will my policy cover computer transfer fraud?
Some policies include computer fraud or funds transfer coverage, but many require specific wording or endorsements to respond to electronic theft.
Can we add additional insureds or certificate holders?
Yes. Carriers commonly issue certificates and add certificate holders per contractual needs, but adding insureds to D&O coverage is limited and handled case by case.
Still have questions? Talk to a local insurance expert.