Directors and officers can be personally sued for decisions they make on behalf of a company. D&O insurance helps protect their personal assets and can help the organization attract and retain leadership.
Directors and officers can be personally sued for decisions they make on behalf of a company. D&O insurance helps protect their personal assets and can help the organization attract and retain leadership.
D&O insurance covers claims against directors and officers for alleged wrongful acts in their capacity as leaders—such as breach of duty, mismanagement, or failure to comply with laws. It can reimburse defense costs and settlements or judgments, subject to policy terms.
Public companies, private companies with a board, nonprofits, and organizations with key decision-makers often carry D&O. Lenders, investors, or partners may require it. Startups and growth-stage companies also buy it to protect executives and board members.
Without D&O coverage, directors and officers may have to pay defense and settlement costs personally. That can make it harder to recruit qualified board members and executives and can expose individuals to significant financial risk.
Policies vary. Many D&O policies cover the directors and officers as individuals. Some include entity coverage for certain claims against the company. Your agent can explain the structure of the policy.
No. Professional liability covers claims about professional services or advice to clients. D&O covers claims about management, governance, and fiduciary duties to the organization and its stakeholders.
Need help finding the right commercial insurance coverage for your business? Request a quote and speak with True Shield Risk about your options.