Regardless of your company’s size, the legal cost to defend a director is substantial, as are the potential personal penalties. Due to the personal liability risk—which is not covered under a personal insurance policy—protecting boardroom talent can be a challenge. To help ensure both your officers’ and company’s well-being, a directors’ and officers’ liability insurance (D&O) policy is part of a comprehensive risk financing strategy.

 

What Does D&O Cover?

A D&O policy specifically provides coverage for a “wrongful act,” such as an actual or alleged error, omission, misleading statement, neglect or breach of duty. This coverage provides defense costs and indemnity coverage to the entity listed on the policy declarations, which may include:

  • coverage for individual directors and officers
  • reimbursement to the organization for a contractual obligation to indemnify directors and officers that serve on the board; and
  • protection for the organization or entity itself.

Whether you’re a nonprofit, privately held or a public company, it is likely that your business can benefit from a D&O policy. Since there is no such thing as a “standard” policy, a professional agent is invaluable when purchasing D&O coverage. Together, we help you understand potential risks your organization faces and can knowledgeably help you design policy language to meet your needs. Call us today to learn more about the appropriate protection for your company against potential directors’ and officers’ liability.

Testimonial

"Tony and Michele are fantastic to work with, they understand our needs and wants and execute perfectly. In the past years that we have been with Neckerman, I have not had to worry once about insurance coverage, or obtaining COIs for our commercial clients. Thank you guys for everything that you do!"

- Alex A.