Directors & Officers (D&O) Liability insurance helps cover defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organization's board of directors and/or officers. These types of claims have become increasingly common and directors and officers themselves could be held personally liable.
All organizations, whether publicly or privately held, and the people who lead them, are vulnerable to a multitude of Directors & Officers (D&O) exposures. These can include securities litigation, regulatory actions, allegations of misrepresentation and other breaches of fiduciary duties. Mergers and acquisitions, signs of financial weakness and perceived conflicts of interest can all be triggers for shareholders, competitors, customers, employees and government entities to make devastating claims against directors and officers.
Directors officers coverage can be for profit companies (private & public) and non-profits as well as financial institutions and associations.
Top Reason to you need Directors Officers Liability Coverage (D&O)
- Directors and officers can be held personally liable for claims; organizations increasingly
consider personal liability coverage as one of the most important aspects of their D&O program.
- D&O liability claims related to regulatory actions are increasing for all types of
organizations, representing 23 percent of claims in 2012.
- Directors and officers increasingly desire additional assurances beyond corporate
indemnification — 43 percent desire added protection in the event their company becomes
bankrupt and/or insolvent.
- Directors and officers and their respective organizations are susceptible to a wide range of
claimants1 including shareholders, competitors, customers, employees and government entities.
- D&O claims are increasingly common for private companies, public companies and nonprofits:
36 percent of all organizations reported claims in the last 10 years.