stock-footage-female-caucasian-business-executive-boardroom-meeting-multi-ethnic-business-teamDirectors and Officers liability insurance covers directors and officers for claims made against them while serving on a board of directors and/or as an officer. D&O liability insurance can be written to cover the directors and officers of:

  • For-Profit Businesses
  • Privately Held Firms
  • Not-For-Profit Organizations
  • Educational Institutions

The policies contain “shrinking limits” provisions, meaning that defense costs—which are often a substantial part of a claim—reduce the policy’s limits. This approach contrasts with commercial general liability (CGL) policies, in which defense is covered in addition to policy limits.

Other distinctive features of D&O policies are that they:

  • Are written on a claims-made basis
  • Usually contain no explicit duty to defend the insureds (when covering for-profit businesses)
  • Cover monetary damages but exclude bodily injury and property damage