Directors & Officers (D&O) Liability insurance helps cover defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organization's board of directors and/or officers. These types of claims have become increasingly common and directors and officers themselves could be held personally liable. To attract and retain qualified executives and board members it's crucial to have Directors & Officers Liability insurance in place.
All organizations, whether public, private, nonprofit or financial institutions and the people who lead them are vulnerable to a multitude of D&O exposures. These can include securities litigation, regulatory actions, and allegations of misrepresentation and breaches of fiduciary duties.
TOP 5 REASONS YOU NEED COVERAGE
- Directors and officers can be held personally liable for claims; organizations increasingly consider personal liability coverage as one of the most important aspects of their D&O program.
- D&O liability claims related to regulatory actions are increasing for all types of organizations, representing 23 percent of claims in 2012.
- Directors and officers increasingly desire additional assurances beyond corporate indemnification for added protection in the event their company becomes bankrupt and/or insolvent.
- Directors and officers and their respective organizations are susceptible to a wide range of claimants1 including shareholders, competitors, customers, employees and government entities.
- D&O claims are increasingly common for private companies, public companies and nonprofits.
Travelers Directors and Officers Liability policies have a broad definition of claim and cover the defense costs, settlements and judgments associated with claims. Travelers D&O policies not only help provide protection for the assets of the company and the personal assets of its directors and officers, but also help protect the personal assets of a director or officer’s spouse, domestic partner or the deceased director or officer’s estate.