Directors and Officers (D&O) insurance is a type of liability insurance that protects the personal assets of corporate directors and officers, as well as the company itself, in the event they are sued for alleged wrongful acts while managing a company.
D&O insurance typically includes three main types of coverage:
Side A Coverage: Protects individual directors and officers when the company cannot indemnify them.
Side B Coverage: Reimburses the company when it indemnifies its directors and officers.
Side C Coverage: Covers the company itself in securities claims.
Common exclusions in D&O policies may include:
Fraud or criminal acts
Personal profit or advantage
Claims arising from prior acts
When considering D&O insurance, companies should:
Assess their risk exposure and the potential for lawsuits.
Choose a reputable insurer with experience in D&O coverage.
Review policy terms and conditions carefully to ensure adequate coverage.
D&O insurance is essential for:
Publicly traded companies facing shareholder lawsuits.
Private companies seeking to attract and retain top executives.
Nonprofit organizations protecting their board members.
D&O insurance is applicable across various industries, including:
Technology
Healthcare
Financial Services
Nonprofits
Here are some templates that are similar to Directors and Officers (D&O) Insurance Policies.