Directors and Officers Insurance

Shopping for business insurance can be daunting when you don’t know which protections you need. There are a variety of policies and not every company needs to have coverage in all areas. Your business insurance should acknowledge your company’s risks.

One insurance policy that all industries should consider is a D&O policy or Directors and Officers policy.

Who Is a D&O Policy For?

D&O insurance is for executives and high-level employees. The policy can protect directors and officers in a variety of industries, including:

  • Educational institutions
  • Corporations
  • Non-profits
  • Private firms
  • Condo associations

Some policies may have different limits and may cover different officers in the company, however, most companies require some form of D&O insurance to protect their management team.

What Does a D&O Policy Cover?

D&O coverage protects directors and officers from claims made against them. Those in higher positions have to make a lot of decisions for the company and clients. Claims that a person did not follow by-laws, that an officer committed defamation or improperly used funds can be covered with a D&O policy. D&O coverage is not for intentional acts.

All businesses require insurance. To protect your higher-level employees and other officers, you need the right policy. If someone files a claim against the directors or officers, insurance will help cover the losses.

What Is Directors and Officers Insurance?
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