Directors and Officers

In today’s business climate of corporate transparency and accountability, an organization’s officers and directors face a myriad of employment-related exposures.

Get Started today!

"*" indicates required fields

Regardless of your company’s size, the legal costs associated with a lawsuit can be crippling. Without proper insurance, qualified directors and officers may hesitate to join your team due to fear of personal liability in the event of an error. To help recruit strong leaders and ensure the well-being of existing leaders and your company, a Directors and Officers (D&O) liability insurance policy should be part of your comprehensive risk management strategy.

Coverage Options

D&O Coverage Includes:

Coverage for Individuals

Protects personal assets against legal claims arising from their decisions.

Protection for the Organization

Shields the entity itself from legal claims

Reimbursement to the Organization

Covers the organization’s contractual obligation to indemnify directors and officers serving on the board

Exclusions:

Fraud Exclusions

Eliminates coverage for losses due to dishonest or fraudulent acts or omissions, or willful violations of any law or rule.

Retention Requirements

Policies typically require the insured to retain a portion of the risk uninsured. This amount varies, so speak to your KRGinsure representative for guidance.

Customization Options

In addition to the standard provisions of D&O insurance, additional forms of coverage can be added to create adequate protection for the unique risks your directors and officers face. These may include:

Entity coverage
Payment priority for insured individuals
Severability of the insured as well as severability of the application
Coverage over time for past, present, and future directors and officers
Pay on behalf clause
Duty to defend clause

Some D&O policies can also be endorsed to provide employment practices liability (EPL) coverage and/or fiduciary liability.

Why Insure Directors and Officers?

D&O insurance is essential because it fills a critical coverage gap that a commercial general liability policy does not cover. A general liability policy provides coverage for claims arising from property damage and bodily injury, while a D&O policy specifically covers “wrongful acts” such as actual or alleged errors, omissions, misleading statements, neglect, or breach of duty.

For instance, if a company’s decision leads to a supplier’s financial loss due to increased inventory on a false promise, the supplier may sue the company. A D&O policy provides defence costs and indemnity coverage in such scenarios, ensuring that your directors and officers are protected against legal action.

Who Needs Directors and Officers Insurance?

D&O insurance is beneficial for:

Non for Profits

Privately held companies

Public companies

Related Insurances

KRGinsure Brokers, Your Coverage Expert

Whether you’re a non-profit, privately held, or public company, your business can benefit from a D&O policy. Since there is no standard policy, a professional broker is invaluable when purchasing D&O coverage. At KRGinsure, we make it our priority to understand your organization and assist you with customizing policy language to meet your unique needs.