What is Director and Officer (D&O) Liability?
D& O Liability provides coverage for lawsuits that arise out of wrongful acts, or errors and omission-type claims. Examples of such claims under this policy would be: employment-related claims like negligent hiring practices or wrongful termination, acts beyond the authority of the director or officer involved including wrongful suspension of employees and or officers, selection and eligibility disputes, in addition to matters involving changes to interpretation of or implementation of rules with regards to sexual harassment, gender, race, or ethnicity.
If officers of your company are sued for these types of incidents, coverage for such claims would fall under a D&O policy.
D&O Insurance does not cover claims that arise out of bodily injury or property damage. Those types of incidents are specifically covered under the general liability policy. For example, if a board member or director of a sports team is sued because a player was severely injured or because the team vandalized someone’s property, those claims would be covered under the general liability policy.
Who is covered by D&O insurance?
A D&O policy protects the individual directors and officers of a company. It also covers the company itself, as well as managing members while acting in an official capacity.
Who should purchase the coverage?
We recommend that all companies consider purchasing D&O liability to protect their board members and operations. Coverage is available for all types of companies, associations, and sports leagues and can be specifically tailored to accommodate all key personnel.