People and organization
Identify whether the form covers current, former and future directors and officers, and whether separate entity coverage applies. Indemnification by the organization and policy coverage are distinct questions.
Business insurance
Directors and officers liability insurance
Directors and officers policies address defined management liability exposures. Who is insured and which claims qualify depend on the policy.
Understanding your options
What to know about directors and officers liability insurance
Directors and officers liability coverage is designed around claims concerning management acts, subject to the form. It is distinct from a premises liability policy and should be examined alongside the organization's other management and employment coverages.
What to compare
- Identify covered directors, officers and entity coverage
- Review claims-made and prior-acts conditions
- Compare defense provisions, limits, retentions and exclusions
Coverage, eligibility, limits and exclusions depend on the insurer and policy. Review the actual policy documents before making a decision.
A closer look
How to compare your options
Types of allegations
Review the policy's definition of wrongful acts and how it treats financial reporting, employment, contracts and regulatory matters. Do not assume every management decision is covered.
Defense and claims reporting
Many management liability forms use claims-made wording. Check reporting deadlines, retroactive dates, defense responsibilities and whether defense expenses erode the available limit.
Before you reach out
A few details can help start the conversation.
- Describe the organization and its board
- Identify existing management liability coverage
- Gather policy questions without personal records
Common questions
Directors and officers liability insurance FAQ
Does general liability replace directors and officers coverage?
No. Premises liability and management liability address different kinds of allegations and have different terms.
Are volunteers or committee members included?
The policy's insured-person definition controls. Ask about the organization's specific roles and any endorsements.
Are employment claims automatically covered?
Not necessarily. Review any employment-practices exclusion or separate coverage and its definitions.
Can defense costs reduce the limit?
Some policies include defense costs within the limit. Read the form and compare how defense expenses and retention apply.
Start a conversation
Ask about directors and officers liability insurance.
Share a few basic details and the team can help you take the next step. Please leave sensitive information out of this first message.