Directors & Officers

Do you serve on a board of directors?

If the answer is yes, you could be exposed to lawsuits from shareholders. They may sue you, alleging that you committed acts that reduced the corporation's value. Lawsuits may also arise out of employee practices, allegations of conflicting interests and from providing information to the investing public.

Directors and Officers Liability protects directors and officers of public, private, and not-for-profit corporations against loss (damages and defense costs) arising out of their status or conduct as directors or officers. Common claims allege breach of duty, security law violation and unfair competition.

Corporate directors must take steps to determine whether D&O coverage is needed. If D&O coverage is in place, boards should also determine the amount of coverage available for handling defense costs. Any amounts paid for legal costs are subtracted from the overall policy limits and are not a separate coverage. Criminal acts are not covered by D&O Insurance.