The investor dispute
Minority investors sue the board over the terms of an acquisition.
D&O can defend directors and officers and pay covered loss.
Management & Financial Liability
Directors & officers, public-company rigor for private companies.
Directors and officers (D&O) insurance protects the personal assets of your leaders, and the company's balance sheet, when management decisions are challenged by investors, lenders, employees, customers, competitors or regulators.
What D&O insurance covers.
For private companies and nonprofits, D&O is usually part of a management liability package that can also include employment practices, fiduciary and crime coverage. Our principal has brokered D&O for publicly traded companies, and brings that rigor to private, family-owned and nonprofit organizations.
- Side ADirectors and officers personally, when the company can't indemnify them.
- Side BReimbursement to the company when it indemnifies its leaders.
- Side CThe company itself for covered claims, which for private companies can be broad.
- Investigation costsResponding to regulatory investigations, where the policy includes it.
- Related management liabilityEmployment practices, fiduciary liability for benefit plans, and commercial crime, when packaged.
What it typically doesn’t cover
- Insured versus insuredClaims between insiders may be excluded, with exceptions that need careful review.
- Prior and pending litigationMatters that began before a set date are excluded.
- Fraud and illegal profitExcluded once established by a final adjudication on most forms.
- Bodily injury and property damageThese belong to general liability. General Liability & Products Liability Insurance
Coverage descriptions are general summaries. Actual coverage is governed by the terms, conditions and exclusions of the policy issued. Availability varies by state and carrier.
Real-world examples
What a claim can look like.
Claims rarely look dramatic at the start. They usually begin with an ordinary day, an email or a phone call.
The board decision
Members of a nonprofit sue its volunteer board over a decision to merge with another organization.
D&O can defend the directors and pay covered loss.
The investigation
A regulator opens an inquiry into the company's practices.
Investigation costs can be covered, depending on the policy.
Examples are illustrative. Whether a claim is covered depends on the facts and the terms, conditions and exclusions of your policy.
Often paired with
Employment Practices Liability Insurance (EPLI)Coverage for claims involving harassment, discrimination, wrongful termination and other employment-related practices.Cyber Liability InsuranceFinancial protection against data breaches, ransomware, network security incidents and other cyber-related exposures.Professional Liability / E&O InsuranceClaims alleging that your professional advice, services or work caused a financial loss.Intellectual Property (IP) Infringement InsuranceProtection against certain claims involving patent, trademark and copyright infringement.Related insights
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Common questions about D&O insurance, answered.
Do private companies need D&O insurance?
Often, yes. Private company leaders can be sued by investors, lenders, customers, competitors and regulators. Investors frequently require D&O before closing a funding round.
Do nonprofits need D&O insurance?
Volunteer board members can be named in lawsuits. D&O helps nonprofits recruit and protect their boards, and many grantors and partners expect it.
Is employment practices liability part of D&O?
It's usually a separate coverage part, often sold together with D&O in a management liability package.
How much does D&O insurance cost?
D&O pricing reflects your company's size, financial condition and ownership, industry and growth stage, any funding or acquisition activity, claims history, and the limits and retention you choose. We compare options across our carrier relationships so you see real prices for your business, not an average.
Talk to an advisor
Let's get this fitted properly.
Tell us about your business. A principal will review your needs, shop the market and walk you through the options in plain English.