Management Liability (Directors & Officers)

Director's and Officer's Insurance (D&O) is a coverage designed to protect the decisions made by an organizations management. This management can be the Board of Directors, managers, or Officers that are named. This kind of policy covers defense costs for investigations of criminal acts or regulations. Claims can arise from all kinds of acts, both intentional and accidental. These kinds of risks tend to have very big consequences, so the costs for defense can be huge.

Why have Management Liability (Directors & Officers) Insurance?

D&O insurance is often purchased by the company itself to insure its management. This kind of coverage can be applied to most organizations. For-Profit, Non-Profit, Public and Privately owned organizations can purchase a D&O policy. Each of these have their own unique risks. A D&O policy differs from a Professional Liability policy in that it does not necessarily protect the insured's services; it protects its management. For example, a publicly traded company has just gone bankrupt and the stock is worthless. The company's directors fired the CEO, but now have to face the rest of its shareholders in court. This lawsuit has the potential to destroy this company, but because of its D&O policy, it can at least defend itself in court or reach a settlement to stay afloat.

Coverage May Include

Protect directors and officers from liability arising from actions committed as board members or officers of an organization.

• A duty to defend policy including full prior acts
• Unlimited extended reporting period for former directors and officers
• Automatic outside directorship liability coverage for service on 501 (c) 3 boards
• Duty to indemnify available
• Standalone coverage for D&O and Employment Practice Liability (EPL) available
• Policy can be written with D&O, Fiduciary, and Crime
• Choice of counsel
• Deductibles starting at $0 for D&O and EPL
• Defense outside the limit available