Directors & Officers

Directors and Officers liability insurance provides specialized coverage for the directors and officers of your company. This coverage protects these individuals from being personally liable as a result of alleged errors in judgement, breaches of duty, or wrongful acts in the course of their work for your organization.

Directors and officers liability insurance is needed when a board of directors is assembled. Investors usually require that you have directors and officers liability insurance as part of the conditions for funding your company.

Who should buy directors & officers liability insurance?

Any publicly traded company with a corporate board or advisory committee should consider director and officers liability insurance. Non-profit organizations, homeowners associations and private companies could benefit as well from the protection offered by directors and officers liability insurance.

Why purchase directors and officers liability insurance?

Claims from employees, clients and stockholders may be made against any company and against the directors and officers of a company. Since a director or officer can be held personallly responsible for their acts, directors and officers will want to be covered rather than risk their personal assets, which they do if no directors & officers liability policy is in place.

What does directors and officers liability insurance cover?

Criminal, administrative, civil, and regulatory proceedings based on actual or alleged acts, errors, omissions, misstatements, neglect, or breach of duty committed or allegedly committed by a director or officer are covered with directors and officers liability insurance.

The difference between D&O vs. professional liability or errors & omissions.

Directors and officers liability insurance is often confused with professional liability insurance or errors and omissions coverage. The two are not the same; professional liability/errors and omissions coverage applies to performance failures and negligence with respect to products and services, not the performance and duties of the executive team (as with directors and officers liability insurance).

Call 406-222-0944 and speak with a business insurance agent today.