Directors & Officers Liability Insurance

Building a business comes with many risks. Beyond finding a base of operations, vehicles and clientele, the most important piece of the company puzzle is employees. You want workers who are dedicated and trustworthy to help push your business higher and higher.

But what happens when one of your trusted directors or officers makes a mistake or has a claim filed against them? Although you do your best, it's not possible to anticipate everything. Carefully vetting your employees can only protect you so much. Directors and Officers Insurance helps cover the rest.

What Is Directors And Officers Liability Insurance?

Directors and Officers Liability Insurance (D&O Insurance) is an insurance policy that covers your business in the vent someone files a claim against one of your directors or officers. This policy can help protect a director or officer (and in turn, the business) against claims concerning poor decisions that result in financial loss.

D&O insurance can provide monetary assistance for legal bills for the directors and officers (Side A), the organization itself (Side B) and both if the director or office and organization are codefendants (Side C).

What Does A Directors & Officers Insurance Policy Cover?

A D&O policy might assist with covering accidents where a director or officer is sued based on:

• Providing misleading information
• Mismanagement
• Errors
• Not complying with laws or regulations
• Poor employment practices
• Cyber liability

Do I Need Directors & Officers Insurance?

If your organization has a board of directors or officers — such as a private firm or educational institution — you'll need D&O Insurance.

Why do Companies need D&O insurance?  

The legal cost of defending a company’s directors or officers can be substantial. In today’s climate of corporate transparency and accountability, ensuring that your business has adequate protection is essential. A D&O policy can help fill a coverage gap, offering protection against claims of a “wrongful act,” which may include an alleged or actual omission, error, neglect, breach of duty, or misleading statement.  

Is Directors & Officers Insurance The Same As Professional Liability?

D&O Insurance has similarities with professional liability, but the two policies are not the same. D&O insurance helps with legal fees in the event a director or officer of the company is sued. Professional liability insurance provides coverage for mistakes made by the company that monetarily injure their clients.

What Is Directors & Officers Insurance For Nonprofit Organizations?

Despite popular belief, nonprofit organizations may need D&O Insurance as well. If your business is nonprofit or a small for-profit business, expensive claims can take out your savings in a blink.

What Does Directors & Officers Insurance Not Cover?

Generally, D&O Insurance won't cover such illegal acts as fraud, bodily injury, property damage or personal profiting.

Find the Right Coverage With Trusted Partners

The agents at Bruening Insurance Agency know the ins and outs of Directors and Officers Insurance. We can find you an affordable price for the right coverage to keep your business and your employees insured. Call us at (800) 293-0131 or get an online quote today.