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For directors and officers

Directors and officers bear the responsibility of determining the direction of an organization and establishing its operating policies and procedures. Any breach of duty or wrongful act performed by these individuals could cause harm to others. If an injured party files a successful lawsuit, the resulting financial loss could have significant consequences for the directors and officers, as well as the entire organization.

Directors and officers (D&O) liability insurance is available to cover these situations. A comprehensive policy will indemnify injured individuals by providing financial compensation stemming from a lawsuit judgment or settlement. The plan will protect the assets of the directors, officers, and organization as a whole.

directors and officers insurance
directors and officers insurance


What Does D&O Liability Insurance Cover?

A D&O plan may consist of up to four insurance clauses, referred to as “sides,” that apply to the different liability scenarios that directors, officers, and organizations may face:

  • Side A (non-indemnified):  This component applies to officers and directors when the organization is legally unwilling or unable to compensate them for their loss. In other words, Side A safeguards individual officers and directors against claims for which the organization won’t provide coverage.
  • Side B (indemnified): Side B is the portion of the policy that typically applies to the majority of D&O claim situations. It reimburses the organization for the indemnification obligations it has to its directors and officers.
  • Side C (entity securities coverage): This coverage protects corporations (as opposed to individual directors and officers) against claims resulting from the offer, sale or purchase of shares of their stock.
  • Side D (shareholder derivative): Some D&O policies may also provide this coverage, which pays for the costs of investigations into shareholder derivative claims. These claims typically take the form of lawsuits filed by one or several shareholders on behalf of the organization against a third party (which may be an officer or director) when management fails to do so in situations involving a financial loss.

Examples of When D&O Coverage Can Apply

A D&O liability insurance policy may provide coverage for the following:

  • Wrongful acts: A wrongful act may occur when directors or officers commingle company and personal funds, engage in inappropriate self-dealing, or have conflicts of interest that impact their duties to the organization. Another example is when a corporation misrepresents its financial situation to secure funding from an investor.
  • Errors in judgment: This insurance may cover a variety of errors committed by directors or officers, such as authorizing misleading reports or making claims about the performance of a product without proof to support them. 
  • Negligence: Examples of when directors and officers may be negligent include failing to exercise oversight that would have detected an employee embezzlement scheme, misappropriating the organization’s funds, not regularly inspecting the company’s accounting records or routinely missing scheduled board meetings.
  • Improper financial management: A D&O policy will help to defend directors and officers who are accused of mismanaging the organization’s resources, such as when selling assets at an unreasonably low price or extending credit when it is not warranted.

Please note that XINSURANCE does not offer any coverage for workers’ compensation.

Make XINSURANCE Your D&O Liability Insurance Partner

Perhaps you’re having trouble finding an insurance partner that will provide the right amount of D&O liability insurance coverage, or maybe you’ve been canceled or non-renewed by your carrier. At XINSURANCE, we specialize in these situations. We’re able to offer customized insurance solutions with limits up to $20 million. We take on the risks that others turn down — even if you have a less-than-perfect claims history, we can help.

Your Source for All-in-One Liability Protection

By providing customized coverage solutions under one policy, XINSURANCE can meet all your liability insurance needs. Knowing that your assets are covered gives you true peace of mind. You’ll also appreciate our fast, reliable claims service. You’ll have a trusted partner you can count on to be there in your time of need. Our 24/7 claims hotline is available whenever a situation arises.

We’ll even conduct a free policy review to help you identify any gaps or exclusions on your current plan.

Getting a D&O Liability Insurance Quote Is Fast and Easy

With our quick quote process, you can get the coverage you need without delay. Start by filling out and submitting our online application to our underwriting team. We’ll review your app and contact you by phone to discuss the risk in further detail. We’ll then issue a no-obligation quote for your approval.

Please contact us to get your D&O liability insurance quote today.

With XINSURANCE, you can purchase customized liability insurance coverage that will protect you in all the areas that your homeowners, employers, and business insurance policies won’t or can’t. Our underwriting team brings you over 40 years of experience, along with the ability to offer customized limits, coverage, deductibles, and premiums to create the perfect plan for your personal protection.

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