Directors and Officers (D&O) insurance protects executives from their executive decisions, but does it cover all mistakes?
Ignorance is bliss, many say. But when it comes to executive risks, it isn’t bliss, it’s expensive. This is why it’s important to understand your D&O insurance policy–what it covers and what it doesn’t cover. Everyone knows that directors and officers insurance covers securities claims, but it also covers other facets of your business. Not knowing what it covers can lead to a failure in submitting other claims that the policy could cover. Know your directors and officers insurance policy a little better with this guide on what D&O insurance does and doesn’t do.
Non-Securities D&O Claims
- The firm’s board of directors refuses an offer to buy the company. The refusal is looked as wrong by other members of the board.
- Certain executives are a part of an alleged price-fixing litigation.
- During a battle of intellectual property, allegations are made that executives at a company intentionally infringed on the rights of another firm.
- Regulators allege that the company and some of their officers misled the company when it came to business practices, and the company’s executives were negligent in their duty.
- A highly placed executive indicates that they were wrongfully detached from the company due to actions and conspiracies by certain other directors or officers.
- Lenders accuse fraudulent misrepresentation by a company executive in a loan application when the organization is unable to repay the loanees.
Of course, at the end of the day, the amount you’ll pay for directors & officers liability insurance depends on your unique business and your unique board. To get a quote for your coverage, contact the experts at NorthStar Risk Management & Insurance Services, Inc. in Walnut Creek, California. We can help tailor a policy to protect your specific exposures and your bottom line.