D&O insurance, also referred to as Directors & Officers insurance, covers the defense costs, awards or settlement from lawsuits or wrongful act allegations filed against the officers or board of directors of an organization. The four primary types of D&O insurance include:
- Private Companies – A private enterprise is as vulnerable to exposures as is a public organization. These include regulatory actions, breaches of fiduciary duties, securities litigation and allegations of misrepresentation.
- Non-Profit Organizations – Insurance protection for judgments and defense costs stemming from wrongful act allegations and lawsuits for non-profits is vital because board members may be held personally liable for the actions of the organization.
- Community Associations – Community homeowners associations need specialized liability coverage. Directors and officers of a community association can be held personally liable for actions and decisions made on behalf of the association.
- Health Care Organizations – Custom tailored D&O insurance for health care organizations must be able to respond to the changing exposures and operations of the business. Flexible limit options with additional defense coverage allow you the opportunity to select duty to defend or reimbursement coverage at policy inception.
Planning in advance is essential for Directors & Officer insurance. Make sure that an experienced insurance specialist provides you with protection of your assets and those of your Directors and Officer before threats occur.