Directors & Officers Liability Insurance

What is Directors & Officers Liability Insurance?

Directors and Officers Liability Insurance (D&O) is liability insurance payable to the directors and officers of a company, or the organization itself, as reimbursement for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and/or officers.

What Does Directors & Officers Liability Insurance Cover?

  • Protects a corporation’s directors and officers when the company cannot indemnify the individuals.
  • Reimburses the organization when it indemnifies the individuals, thus protecting the company’s balance sheet.
  • Also known as “entity coverage,” this eliminates disputes of coverage allocation when both the directors and officers and the insured organization are named as co-defendants in a securities lawsuit.

Is Directors & Officers Liability Insurance Mandatory?

While Directors & Officers Liability insurance is not required, it does protect corporate directors and officers in the event that they are personally sued – often in addition to the company being sued – by investors, employees, vendors, competitors, and customers, among other parties. It protects directors and officers by covering legal fees, settlements and other costs. In addition, the coverage sometimes can extend to protect the company if it is named in a suit, as well.

How Can American Integrity Insurance Solutions Help You with an Directors & Officers Liability Insurance Quote?

American Integrity Insurance Solutions is an independent insurance consulting agency that partners with dozens of carriers to provide people with unbiased advice on a variety of insurance products.

Our team is readily available to craft a policy that custom fits to your needs. We promise to not only provide a policy fulfilling your specific needs, but also to help you understand how and what it protects you against.

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