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Directors & Officers (D&O) Insurance
Executives, board members, and company leaders make critical decisions that can expose them to personal liability. Directors & Officers (D&O) Insurance protects individuals in leadership positions from financial losses due to claims alleging mismanagement, wrongful acts, or breaches of fiduciary duty. This coverage ensures that personal assets are safeguarded while also protecting the financial health of the organization.
A D&O Insurance policy typically includes coverage for:
- Legal defense costs and settlements
- Allegations of mismanagement or negligence
- Breach of fiduciary duty claims
- Regulatory investigations and compliance violations
- Shareholder and investor lawsuits
At
McShea Insurance, we understand the unique risks faced by company leaders and tailor
D&O Insurance policies to provide comprehensive protection for decision-makers in both private and public organizations.
Who Needs Directors & Officers Insurance?
Any organization with executives or board members should consider D&O Insurance, including:
- Private and public corporations
- Nonprofit organizations
- Startups and emerging businesses
- Educational institutions
- Healthcare organizations
- Financial services firms
FAQs
How does this coverage differ from Professional Liability?
While D&O Insurance protects company executives and board members from claims related to mismanagement, fiduciary breaches, and wrongful acts in leadership, Professional Liability Insurance (Errors & Omissions Insurance) covers businesses and professionals for claims of negligence, mistakes, or inadequate service in their professional duties. Professional Liability applies to the services a business provides, whereas D&O Insurance protects decision-makers from lawsuits related to their management decisions.
How does D&O Insurance differ from General Liability Insurance?
While General Liability Insurance covers bodily injury and property damage claims, D&O Insurance specifically protects company executives against legal claims related to their professional decisions, fiduciary responsibilities, and leadership actions.
Does D&O Insurance cover lawsuits from employees?
Yes, D&O Insurance can cover lawsuits brought by employees, particularly those involving claims of wrongful termination, discrimination, or mismanagement. However, coverage may vary depending on the policy terms. Businesses may also need Employment Practices Liability Insurance (EPLI) to provide broader coverage for employment-related claims.
How much does D&O Insurance cost?
The cost of D&O Insurance depends on several factors, including:
- The size and structure of the company
- Industry risk exposure
- Claims history and financial stability
- Coverage limits and deductible amounts
At McShea Insurance, we work closely with organizations to customize D&O Insurance policies that provide the right level of protection at a competitive price.
Can I customize my D&O Insurance policy?
Yes! Policies can be tailored to meet the unique risks of your organization. Common endorsements include:
- Entity Coverage: Extends protection to the organization itself.
- Side A, B, & C Coverage: Provides various levels of protection for individuals and the company.
- Regulatory Defense Coverage: Covers legal costs related to regulatory investigations.
Get Started Today
Ensure your executives and board members are protected with Directors & Officers (D&O) Insurance. Contact McShea Insurance today to discuss your coverage options and get a personalized quote.