What is it?
Directors' and Officers' Liability Insurance (D&O) is
insurance payable to the directors and officers of a company, or to the
corporation itself, to cover damages or defence costs in the event they
are sued for wrongful acts while they were with that
Claimants often include shareholders, customers, regulators,
and even competitors (for anti-trust or unfair trade practice
Most potential directors or officers require that a company
maintain a D&O policy before they will agree to sit on the
Our Directors' and Officers' Liability
Insurance protects the directors of privately and publicly held
corporations. Our extensive coverage also includes options to purchase
both Employment Practices and Fiduciary Liability Insurance
For Non-Profit risks, our D&O product has been designed
to meet the unique needs of non-profit organizations. This policy
extends coverage beyond that of the traditional D&O policy to
include coverage for the non-profit's trustees, employees, volunteers
and the entity itself. We also provide an option to extend the policy to
cover any professional liability exposures the non-profit entity may
- Directors' and Officers' Liability Insurance —
Private and Public Corporations
- Excess Directors'
and Officers' Liability Insurance
Management and Corporate Liability
- Employment Practices Liability
- Fiduciary Liability
you should know about D&O
- Directors and officers are not
protected by corporate status.
The members, volunteers,
directors, and officers may still be liable even if the organization is
legally incorporated. Directors and officers of a corporation are
responsible for their own actions as well as those of the corporation.
In some instances they are even responsible for the actions of other
directors. The courts have assessed damages against directors of
corporations for their wrongful actions and in some cases the laws
impose specific legal responsibilities on these
It's a hard truth. One that is best understood before a claim
- Even organizations that
try to do good can get hit with a D&O law
Charities and non-profit organizations may not have
shareholders, but they do have other stakeholders. Potential plaintiffs
include representatives of government agencies, donors, vendors, service
recipients alleging injury from the non-profit's actions or failure to
act, or employees and volunteers.
- Resigning from the board doesn't protect
When directors or officers resign from a company when they find
out there is a problem,they can still be sued. They have a duty to be
diligent and oversee the operation of the organization. If they failed
this duty, even by omission, they can still be held liable even after
they have resigned.
- Not all
policies or insurers are equal.
At the time of a
D&O claim, the last thing you want to learn is that your
coverage isn't as good as you thought it was. While coverage itself is
important, and must cover all the exposures that are unique to your
organization, don't underestimate the amount of expertise required to
properly identify your areas of exposure. Similarly,you want a company
that can step up and guide your organization through the claims process,
and always ensure that your insurer is financially stable and able to
pay claims on your behalf.
- Defending you is often the most difficult and
expensive part of a D&O suit.
Your D&O policy
typically includes the requirement to defend your organization against
lawsuits. Your insurer steps in with their years of D&O
experience and works on your behalf to settle, defend or dismiss the
For many organizations without proper D&O coverage, the
cost to defend yourself against a suit can be permanently damaging —
even if the suit against you settles in your