Directors & Officers Insurance
Directors & Officers (D&O) Insurance protects company leaders—directors and officers—from personal financial loss if they are sued over decisions made while managing the business. This coverage helps pay for legal defense costs, settlements, and other expenses related to claims of wrongful acts.
D&O insurance shields directors and officers from lawsuits brought by employees, customers, vendors, investors, or competitors alleging mismanagement, breach of fiduciary duty, misuse of company funds, or misrepresentation. It reimburses legal fees and settlements arising from covered claims.
What is directors and officers insurance?
Do I need it?
D&O insurance is essential for protecting leaders’ personal assets, letting them focus on running the company without fear of personal financial risk. It’s also important for attracting and retaining qualified board members and executives.
Special Note for HOAs:
Homeowners Associations (HOAs) also benefit from D&O insurance, as board members can face lawsuits related to management decisions, financial oversight, or disputes within the community. This coverage safeguards HOA board members from personal liability while serving their community.
What does it cover?
Misuse of company funds
Breach of fiduciary duty
Misrepresentation of company assets
Legal defense costs and settlements