Whether privately owned, publicly traded or nonprofit, organizations often have a board of directors to oversee operations and governance. Due to their public exposure, organizations and their directors face a variety of risks. These risks can often result in lawsuits, which could lead to financial losses for individual board members or the organization.
This is where directors and officers liability coverage can help. To help understand the coverage, we outline what the coverage does/does not cover, claims examples and how a broker can help.
How can directors and officers liability coverage help organizations?
Directors and officers liability coverage can help organizations handle the cost of incidences such as error, breach of duty or acts wrongfully attempted. The coverage does not protect against bodily injury, property and pollution damage, or criminal acts.
Should a claim be made against an organization, directors and officer’s liability coverage can pay the cost of legal fees and out-of-court settlements.
What are claims examples?
A wide range of organizational risks are addressed by this coverage. While unique to each organization, some examples can include:
- contract disputes
- slander or defamation
- breach of an employment contract
- copyright infringement
- wrongful employment termination
How can a broker help?
A BrokerLink commercial insurance expert can help organizations determine the risks they face and how the coverage can help. Additionally, BrokerLink commercial insurance experts can review an organization’s current insurance and advise about other business insurance coverage which may be beneficial.