Directors & Officers Insurance

Directors and Officers Liability Insurance (D&O)

Directors and Officers (D&O) liability insurance is a form of errors and omissions insurance covering the directors and officers of corporations against suits alleging they committed wrongful act(s).

What D&O Liability Covers

D&O insurance can protect organizations from an array of vulnerabilities, including:

• Misuse of company funds
• Misrepresentation of assets
• Reporting errors
• Fraud
• Breach of fiduciary duty
• Creditor claims
• Failure to comply with workplace laws
• Theft of intellectual property
• Poaching clients from a competitor
• Lack of corporate governance

Coverage typically includes legal defense, organizational losses, settlements, and court judgments. It may sometimes extend to criminal trial defense costs and regulatory investigations, depending on the specific policy.

Who Needs D&O Insurance?

Most organizations with directors or officers have D&O policies in case the worst happens. Regardless of the type or size of your organization, directors and officers insurance should be considered.

You may be required to have D&O insurance if your organization wishes to pursue certain types of work contracts or if you need a standard indemnification provision for your officers and directors.

Many people will not serve on a board of directors without this protection, so directors and officers insurance may help you attract the kind of board members you desire.

The independent insurance agents at Kessler Alair Insurance can tailor a D&O policy and other business liability protection specifically for your organization.