Directors & Officers Liability Insurance (D&O)

Protection Against Management-Related Claims

Directors and officers are entrusted with making high-level decisions that shape the future of a business. When those decisions are challenged, D&O insurance may help cover the costs associated with defending and resolving claims related to:

• Alleged wrongful acts or management errors
• Inaccurate or incomplete financial reporting
• Failure to properly enforce corporate or human resources policies
• Breaches of fiduciary duty or regulatory compliance

D&O policies generally do not cover criminal acts or actions taken for personal gain, such as fraud or embezzlement.

How Directors & Officers Liability Insurance Coverage Works

Once a covered claim is made, D&O Insurance may help cover legal defense costs, settlements, or court judgments—up to the policy limits. This protection is critical, as management-related claims can be complex, time-consuming, and financially significant, even when leaders act in good faith.

Most D&O policies are written on a claims-made basis, meaning coverage applies only if the policy is active when the claim is filed (and, in many cases, when the alleged act occurred). Maintaining continuous coverage is essential to avoid gaps that could leave leadership exposed.

While other liability policies address physical injuries or property damage, they do not protect against allegations involving mismanagement, breaches of fiduciary duty, regulatory non-compliance, or errors in financial reporting. Directors & Officers Liability Insurance is specifically designed to fill that gap—helping protect personal assets, corporate balance sheets, and organizational stability.

D&O coverage provides confidence for leadership teams, investors, and stakeholders, allowing decision-makers to focus on guiding the business forward without unnecessary fear of personal financial exposure.

What D&O Insurance May Cover

Depending on policy structure and applicable laws, Directors & Officers Liability Insurance may help cover legal defense costs, settlements, and judgments. Coverage can apply to individual directors and officers, the company itself, or both—depending on the type of policy selected and local indemnification rules.

Factors That Influence the Cost of D&O Coverage

The cost of Directors & Officers Insurance varies based on several factors, including:

• Company size and organizational structure
• Industry and regulatory environment
• Financial performance and revenue
• Claims history and overall risk exposure

Selecting the right limits and coverage structure helps ensure meaningful protection without unnecessary gaps.

Choosing the Right D&O Policy Structure

D&O insurance policies can be tailored to fit the needs of different organizations. Some policies focus on protecting individual managers, while others extend coverage to the business entity as a whole. The size, structure, and industry of your business often determine which policy arrangement is most appropriate.

Contact us to discuss your organization's leadership risks and explore D&O coverage options tailored to your business.