No. Like most insurance, D&O does not cover intentional fraud, criminal activity, or illegal personal profiting. It is designed to cover "wrongful acts" committed in good faith.
Leading a company comes with significant rewards, but it also carries immense personal risk. Directors & Officers (D&O) Liability Insurance is a specialized shield that protects the personal assets of corporate directors and officers. If they are sued for “wrongful acts” while managing the company—such as breach of duty, neglect, or misleading statements—this insurance ensures their personal savings, homes, and investments are not at risk.
In today’s highly regulated environment, executives can be held personally liable for their decisions. Claims can come from shareholders, employees, regulators, or even competitors. Our D&O plans cover legal defense costs, settlements, and judgments, providing the financial backing needed to navigate high-stakes lawsuits. This isn’t just a safety net for the individual; it’s a critical tool for the company to attract and retain the high-caliber leadership it needs to succeed.
No. Like most insurance, D&O does not cover intentional fraud, criminal activity, or illegal personal profiting. It is designed to cover "wrongful acts" committed in good faith.
Actually, directors of private companies and non-profits are just as vulnerable to lawsuits from creditors, employees, or minority shareholders. Smaller entities often need this protection even more, as they lack the cash reserves to handle long legal battles.
Professional Indemnity (PI) covers the services or advice the company provides to clients. D&O covers the management decisions and actions of the people running the company.