Types Of D&O Insurance
D&O coverage can help organizations manage the costs associated with errors, negligent actions, and liability lawsuits.
There are three main types available to organizations :
Executives in non-profits share similar roles and responsibilities as other organizations. With fewer resources than corporations, it is important to have D&O insurance to protect organization board members. It helps recruit top talent to work in director and officer roles for your non-profit.
Public companies are open to scrutiny. Now more than even, key decision makers are accountable for their actions.
Directors and officers insurance ensures your organization has access to legal counsel. You have protection if executives or management are found liable of erroneous acts, bylaw violations, and errors. You will have coverage for legal fees and representation, providing your organization with financial protection.
Private companies need coverage too. You may not have the same disclosure as public organizations. But your leaders still have exposure. This includes breach of duty, conflict of interest, and misleading commerce partners, customers, and stakeholders. Company and personal assets of leadership can get protection with this plan.
D&O Insurance Subtypes
You have the option to choose between insurance subtypes, or sides :
- Side A : This covers individual directors if the organization cannot cover them.
- Side B : This covers the company if they choose to cover directors and officers.
- Side C : This covers the company for lawsuits for an act not covered under their current insurance.