Directors & Officers Insurance

What it covers

• Lawsuits from employees. Wrongful termination, discrimination, or retaliation claims against management.
• Regulatory investigations. A government agency investigates your business practices. D&O covers the legal costs to respond.
• Customer or competitor claims. Allegations of unfair business practices, misleading statements, or mismanagement.
• Investor or partner disputes. Claims of misrepresentation, breach of duty, or mismanagement of company funds.
• Personal liability. Without D&O, owners and officers can be held personally liable for business decisions. That means personal assets are at risk.

Who needs D&O

Any business with owners, officers, or a board. This isn't just for big corporations. If you run a company with employees, clients, and contracts, the people making decisions are exposed. A wrongful termination claim, a regulatory inquiry, a dispute with a business partner -- these happen to businesses of every size.

If you have outside investors, they'll almost certainly require it. But even without investors, D&O protects the people behind the business.

What to watch for

• Does it cover the company or just the individuals? Some policies only protect directors and officers personally. For most businesses, you also want the company covered because the company is usually the target.
• Prior acts. If you're buying D&O for the first time, make sure it covers decisions made before the policy started. Without this, anything that happened before you bought the policy is excluded.
• Regulatory investigation coverage. Not every D&O policy includes it. If your industry has any regulatory oversight, make sure it's covered.