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Directors & Officers Liability Insurance

This coverage insures corporate directors and officers against claims alleging financial loss arising from mismanagement. The policy contains two coverage’s: the first reimburses the insured organization when it is legally obligated to indemnify corporate directors and officers for their acts; the second provides direct coverage to directors and officers when the organization is not legally obligated to indemnify them.

Directors and Officers can be sued by stockholders, creditors, employees, competitors, regulatory bodies and other third parties. Directors and Officers Liability coverage is typically written on a claims made basis and usually excludes dishonest acts as well as bodily injury and property damage.

Non-Profit Directors and Officers Liability – Provides professional liability coverage for directors and officers of non-profit organizations or associations. Although these policies resemble the corporate Directors and Officers Liability forms, it generally offers broader protection by providing entity coverage; employment practices liability coverage and has lower deductible or retention levels.

Employment Practices Liability Insurance – A form of liability insurance covering wrongful acts arising from the employment process. The most frequent types of claims are; wrongful termination, discrimination and sexual harassment. This coverage is written on a stand alone basis but is usually available as an endorsement to Directors and Officers Liability policies.

Who is at risk? – Any organization or association that has a board of directors has an exposure:

Charity Groups
Public Corporations
Sports Clubs
Private Companies
Community Associations
Educational Institutions