Directors and Officers D&O Insurance

Most organizations carry provisions to protect board members, but there may be exclusions that leave you open to a lawsuit. Liabilities that aren't covered by your organization can be covered by D&O insurance.

A D&O policy will not recover wages, taxes, fines, penalties, or multiplied damages. It also excludes claims related to unlawful activity.

These claims should be reported immediately when you become aware of the claim.

• Employment practice suits including hiring and firing
• Contract disputes
• Mergers reflecting a conflict of interest
• Financial performance
• Copyright infringement
• Competitor disputes

Typically, your D&O policy includes provisions for a change in control. These provisions often state that the policy will stay in effect for the remainder of the policy period. However, coverage will only be provided for claims involving wrongful acts that occurred before the change. Some policies do terminate immediately upon a change in control, so it is important to understand the terms of your policy.