Directors & Officers

Directors & Officers Liability provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company.

Directors and Officers Liability can usually include Employment Practices Liability and sometimes Fiduciary Liability. The former involves harassment and discrimination suits, and is where the majority of your exposure will be.

Directors and Officers Liability is often confused with Errors & Omissions Liability. The two are not synonymous; Errors & Omissions is concerned with performance failures and negligence with respect to your products and services, not the performance and duties of management. Generally it is a good idea to carry both policies.

Directors and officers owe three distinct duties to the company they lead:

•Loyalty – They must put the interest of the corporation above their own.
•Obedience – Their actions must be driven by the corporate charter and bylaws.
•Diligence (Care) – They must demonstrate both expediency and knowledge.

Breach of these duties may result in a D&O lawsuit that puts the personal assets of the directors and officers at risk.

We welcome the opportunity to assist with all your Director’s & Officers Liability Insurance needs.