Wrongful act allegations and lawsuits have become increasingly more common and frequently name members of boards of directors or officers. In some cases, directors and officers could be held personally liable for damages. When such a claim arises, Directors and Officers (D&O) liability insurance can help cover the cost of defending against the legal action and cover the cost of awards or settlements arising out of the lawsuit. All organizations and the individuals who lead them are vulnerable to D&O exposures. Private companies, public companies, nonprofit organizations, and financial institutions can all benefit from D&O liability insurance. The types of claims that arise may include: A D&O policy for a privately held company may contain several different types of coverage such as a-side, b-side, and c-side. This covers directors, officers, and employees in some cases, when the company cannot indemnify them, for defense costs, judgments, and settlements. When the company does indemnify officers, directors, and employees, this portion of the policy covers the company for their losses. This is also known as “entity coverage.” It is designed to protect the corporation itself financially. The cost of D&O insurance can depend on a variety of factors, including: The best way to find out how much your D&O liability insurance will cost is to obtain quotes from several different insurers. Our agent at Donald J. Medeiros Insurance Agency in Fall River, Massachusetts, can help you evaluate the current market to identify a plan that provides the maximum D&O coverage for your money.
Types of D&O Liability Coverage
A-Side Coverage
B-Side Coverage
C-Side Coverage
Cost of Directors and Officers Liability Insurance
Donald J. Medeiros Insurance Agency offers free, comparative quotes on Directors and Officers Liability Insurance from multiple insurance carriers so you can get the best possible rate.
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