Directors and Officers Liability Insurance, D&O Policy

What is Directors & Officers Liability Coverage?

Directors' and Officers' Liability coverage insures corporate directors and officers against claims alleging loss due to mismanagement and other causes listed below - and can result in judgments of millions of dollars. The cost of mounting a defense against even groundless lawsuits is substantial and can hurt your company financially, as well as threaten the personal assets of its directors and officers.

A privately held company's board members and officers can be sued over their day-to-day actions or decisions by:

Investors and shareholders

Customers and clients

Government regulators

Creditors and lenders

Competitors

The alleged wrongdoings can include, but are not limited to:

Breach of fiduciary duty / mismanagement of the business and operations

Wrongful interference with a contract

Failure to deliver services

Disclosure of materially false or misleading information

Unfair trade practices

Self-dealing and conflicts of interest

Consumer protection violation

Violation of state and federal laws

An outside directorship liability policy is available as supplementary protection to assure sufficient limits for the exposure created when a company’s director, officer or employee serves in an outside director position at its request.

The specialized coverage provided by Directors & Officers Liability Insurance may be offered as an optional additional coverage at an additional premium on Commercial Package Policy (CPP). It can also be included in a customized commercial insurance plan.

Shopping for D&O Liability Insurance?

Brunswick Companies' team of commercial insurance specialists provides the expertise to help you identify your exposures and simplify your insurance purchase, providing the information you need to make an informed decision. We will work with you one-on-one to identify the directors and officers liability coverage plan that suits your specific needs.

Comparing Directors & Officers Liability Plans

Brunswick Companies offers directors & officers liability policies from wide range of top ranked insurers. All of the insurers we represent have received ratings of A- (excellent) or better from A.M. Best Company. With over 35 years of commercial insurance experience, we have the know-how and industry contacts to match your needs with the plan that best suits your risk management and financial goals.

Brunswick Companies is here to assist you in evaluating your exposures and the level of protection required to meet your goals. We can evaluate, negotiate and enforce your directors and officers (D&O) policy, errors and omissions (E&O) fiduciary liability, employment practices liability and other management liability insurance policies. Our clients range from Fortune 500 companies to smaller corporations, as well as boards of directors seeking independent assistance with their own policies.

Who Should Consider Purchasing a Directors and Officers Policy?

Directors and officers face risks to their personal assets from multiple sources, from increased scrutiny by the SEC to class action and derivative lawsuits and rising defense costs. Many corporations, non-profit organizations and professional service firms provide a level of protection for their directors and officers through a D&O policy purchased by the firm.

It is a common misconception that general liability insurance and umbrella insurance coverage will take care of every possible lawsuit. However, general liability insurance does not typically cover the financial consequences for the alleged wrongdoings listed above.

Outside Directorship Liability Insurance

Companies often encourage their employees to contribute their time and talents to community activities, including service as directors, officers or other leaders of nonprofit and for-profit organizations. While outside board directorships can be a useful extension of corporate activity and represent good corporate citizenship, in today's litigious society they canalso create complicated liability issues and exposure for both the company and the individuals who serve.

Outside Directorship Liabilty Insurance plans provide a separate and distinct limit of liabilty independent of a company's directors and officers (D&O) liability limit.

Directors and Officers Policies Protect Your Personal Assets

If you are a director or officer, it is critical that you protect yourself and your family from the financial consequences of such exposures. It is not sufficient to ask if your company has D&O insurance. A consultation with an insurance risk management specialist can help you obtain a more thorough understanding of your exposure to risk and the levels of protection provided by any company-provided plan, allowing you to make an informed decision as to whether securing additional protection is warranted.