What Directors & Officers Liability (D&O) Insurance Usually Covers
- Fiduciary Duty Claims. This is when a board misused or mismanaged company funds.
- Employee Claims. For when a disgruntled employee claims wrongful termination, breach of contract, discrimination or invasion of privacy.
- Competitor Claims. For when a competitor or organization claims defamation, trademark infringement or unfair competition.
Did You Know?
Since 2007, there has been more than 1,500 D&O claims each year, with 60% of them affecting non-profits.Risk Management Society (RIMS)
What Directors & Officers Liability (D&O) Insurance Usually Does Not Cover
- Criminal Conduct. Insurance providers are prohibited by law from covering criminal or fraudulent conduct since it would undermine the fundamental principles of law.
- Owners. Many policies exclude members that own more than 10-15% of the company.