Directors & Officers Liability

All About Directors & Officers Liability

The benefits that Directors & Officers Liability Insurance offers organizations are numerous. Not only does it protect companies if they’re named as defendants in lawsuits, but it also reimburses them when they indemnify their directors and officers in claims. Because of the growing number of issues surrounding corporations today, finding the right Directors & Officers Insurance should be every organization’s top priority.

What Organizations Are Eligible for Directors & Officers Liability?

The ever-changing insurance world can make it tricky to know which organizations can get specific types of coverage. However, many Directors & Officers policies cover:

  • Credit unions
  • Privately held companies with coverage for kidnap and ransom, private debt or equity offerings, fiduciary liability, employment practices liability, and commercial crime
  • Non-profit organizations or associations
  • Publicly traded corporations, including those with impaired financials
  • Companies expecting an initial sale of securities to the public

One of the most alluring aspects of Directors & Officers Insurance is the flexibility. Each organization that’s insured has specific risks and needs that require certain coverage options. By working with a knowledgeable insurance agent, most companies are able to construct a policy that gives them exactly what they want.

Protection for the Unplanned

It’s difficult for corporations to budget for lawsuits. In addition to not knowing how much to put away each year, companies may go years without having any claims made against them and then have to face three claims within six months. Holding Directors & Officers Liability helps organizations protect themselves from unplanned events.


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