A Guide to Directors & Officers Insurance

Company directors and officers are essential to the functionality of a business and with that responsibility comes significant liability and exposure. To protect any possible allegations of failure to perform expected duties, you can cover yourself or your clients with directors & officers insurance. The coverage acts as a financial safety net in the event of future issues.

Customize Your Coverage Details

Providers cover a range of professionals from publicly and privately help enterprises in addition to non-profit institutions. Policies are customized based on your entity’s structure and applicable bylaws. Financial institutions, educators and public officials can find relevant policies to cover their unique set of professional liabilities.

Three Components of Coverage

Policies can be broken into three basic elements:

  • Side A: Covers the personal assets of an individual officer or director.
  • Side B: Reimburses for fees related to the claims brought against the officer or director.
  • Side C: Protects the company if it is a listed defendant within the claim.

Every entity has its own list of common or targeted exposures. Your eligibility will vary depending on your position and be sure to find a policy that covers your specific needs. To understand what type of directors & officers insurance plan is best for you, consult with an agency professional in your area.

Insurance Risk Advisors