Directors and Officers Insurance
We provide directors and officers insurance (D&O) solutions for private companies, public companies and non-profit organizations in Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington.
What is Directors and Officers Insurance?
Directors and Officers Insurance, or D&O Insurance for short, is a type of business liability insurance meant to cover the personal liability of company/organization directors and officers as individuals in addition to the reimbursement of the insured company in the event that it has paid the claim of a third party on behalf of its directors and officers in order to protect them. Additionally, listed stock companies (mainly corporations) may also obtain coverage for claims against the company itself for a wrongful act in connection with the trading of its securities. D&O coverage is available to both For-Profit and Not For Profit (non-profit) companies and organizations that have assigned directors and officers or board members. D&O insurance is not meant to be a substitute for any other type of liability insurance such as Errors and Omissions and General Liability, as it does not provide the same coverages.
Why Should a Company Carry Directors and Officers Insurance?
Anyone can make mistakes, including directors and officers or board members, who can be held legally responsible for them as a result. Corporate and non-profit directors and officers often walk a fine line, making difficult and complex decisions based on what is sometimes limited information at best, such as in the case of mergers and acquisitions. Regardless of how diligent they are and how strong their business knowledge may be, any director or officer’s decision can result in losses for the company or a third party, potentially leaving them liable for those losses and the costs incurred to defend themselves in court. Companies and organizations need to be able to ensure that their directors and officers have adequate room to make decisions without the fear of losing their own personal assets. D&O Insurance allows these decisions to be made with confidence by offering the directors and officers a certain degree of financial security. Also, in some cases of bankruptcy, D&O Insurance can often be one of a company or organizations few remaining assets, providing the company, its shareholders and/or creditors a way to recoup part of the loss.