Directors and officers (D&O) liability coverage is a must have for every size organization and business.


D&O insurance protects the directors and officers of an organization from liability arising out of their actions taken on behalf of that organization.  These actions can include, but are not entitled to:  Poor investment oversight, negligence, misstatements, omitting important information, management decisions, and other actions that results in financial loss to shareholders.

D&O coverage basics

While most publicly traded companies and private or non-profit organizations have coverage that protects the company itself from liability in the event of a claim, others cover only the directors and officers of the corporation.  It is important to discuss with your insurance professional what coverage is crucial for your company in your industry.

Generally, D&O coverage comprises Side A coverage, which provides a defense and pays losses arising from negligent acts of an officer or director of a company, and Side B coverage, which will reimburse corporations for losses the organization pays to indemnify their directors and officers for claims against them.

Side C coverage was added in the 1990s to offer protection to the corporation against allegations of security irregularities.  Additionally, employment practices liability coverage is increasingly common on D&O policies.  This coverage provides defense and indemnity against allegations of wrongful termination, sexual harassment, and other violations of state and federal employment laws.

Contact Brazelton Insurance Group today to discuss what D&O liability coverage is needed for your business.