Director’s and Officer’s Liability Insurance

If you are a decision-maker for a for-profit privately or publicly held company, a non-profit, an educational institution, or a government entity—you need Directors and Officers Liability coverage.


Why You Need Directors and Officer’s Insurance Coverage

Directors and officers make decisions and take actions that could result in claims if those actions result in adverse financial consequences. Directors and Officers liability responds to potential lawsuits filed by employees, shareholders, customers, government agencies or competitors.

Directors and Officers Liability insurance covers defense costs and monetary damages resulting from these claims. D&O covers liabilities of the corporation itself as well as the personal liabilities of the directors and officers of the business.


Director’s and Officers Liability Insurance Explained

Directors and officers liability insurance coverage — often called D & O insurance — is designed for instances when any party sues the officers or directors of any non-profit, public or private organization. Directors and officers can be named in lawsuits filed by vendors, investors, employees, customers, competitors or other plaintiffs and when they are executives. Even their spouses may find their personal assets at risk. Officers liability insurance protects the private assets of directors and officers in this event.

For both alleged and wrongful acts a company commits, those managing the company may be named in a suit. While businesses have insurance to protect their assets against a legal claim, directors & officers liability coverage protects the company’s leaders more fully.

Officers and directors can be sued or named in a lawsuit stemming from many allegations, including misuses of funds, misrepresentation, breach of fiduciary duty, violation of workplace regulations, fraud, intellectual property violations and other acts. While directors and officers insurance does not cover illegal activity, it will protect you against alleged wrongful actions. Since any company with a corporate board or advisory committee is at risk of legal claims, any organization with a corporate board or advisory committee needs directors and officers coverage.

D&O insurance coverage also protects a company by covering legal costs, settlement awards and other expenses related to a claim. As many officers and directors may want protection of their personal assets, they may look for insurance and indemnification, which holds them harmless for losses in a claim. Having D&O insurance can, therefore, help organizations retain top talent.


The Knowledge You Need for the Unexpected

Gunn-Mowery partners with several insurance companies that have a single policy that includes Directors and Officers Liability as well as the other Management Liability coverages needed by businesses operating in today’s legal environment. A Gunn-Mowery agent will compare policy forms and pricing to identify the carrier offering the most comprehensive and cost-effective program tailored to your business operations.


Whether you’re a closely-held company or a Fortune 500 candidate, Gunn-Mowery can assist with placing your Directors and Liability policy. Our experienced staff will request needed policy changes, assist with billing, provide risk control services and be an advocate for any potential claims. The benefit of Directors and Officers Liability Insurance is the reimbursement of costly defense expenses and protection of personal assets.



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