What You Need to Know about D&O Insurance

​Directors and officers insurance, also known as D&O Insurance, is one of the most misunderstood Business Insurance policies out there. However, it is also one of the most important for your business. Knowing just how a D&O policy will provide coverage for your business can help to keep you financially stable.

D&O Insurance is meant to provide coverage for any claims that are brought against your directors and officers while they are serving on your board or directors and/or as an officer. D&O insurance can help to cover the directors and officers of privately held firms, not-for-profit business, non-profit organizations, and educational institutions. These policies will help to function as an errors and omissions liability policy for the management of a company or organization, helping to cover any claims that are the result of managerial decisions that have unfavorable financial consequences.

Typical D&O Insurance policies have “shrinking limits” provisions, in which the defense costs will help to reduce the limits of the policy. This is a contrasting approach of many other business insurance policies, including commercial general liability, in which the defense costs are covered in addition to the limits of the policy.
There are also many other special features of D&O policies, including:
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• They are written on a claims-made basis.
• They typically do not contain any explicit duty to defend those who are insured.
• They cover monetary damages but will not provide any coverage when it comes to property damage and bodily injury.

Knowing that your company is protected with the right D&O Insurance policy will help to give you the peace of mind that you deserve. Contact us for your business insurance coverage needs to ensure that you have the right amount of protection at the right price.