What is Directors & Officers Insurance?
Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company.
The insurance, which usually protects the company as well, covers legal fees, settlements, and other costs. D&O insurance is the financial backing for a standard indemnification provision, which holds officers harmless for losses due to their role in the company. Many officers and directors will want a company to provide both indemnification and D&O insurance.
Directors and officers are sued for a variety of reasons related to their company roles, including:
- Breach of fiduciary duty resulting in financial losses or bankruptcy
- Misrepresentation of company assets
- Misuse of company funds
- Failure to comply with workplace laws
- Theft of intellectual property and poaching of competitor’s customers
- Lack of corporate governance
Illegal acts or illegal profits are generally not covered under D&O insurance
You Also May Be Interested In The Following Commercial Insurance Coverage
Quality commercial insurance coverage protects a business from many liability issues. Contact Josh Jackson and Jake Jackson at Jackson Insurance Solutions in Albuquerque for information on all of the business insurance lines we offer.
Business Liability - Commercial Auto - Professional Liability - Workers Compensation - Property Insurance - Commercial Umbrella - Directors & Officers Insurance - Cyber Liability Insurance - Builders Risk
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Jackson Insurance Solutions provide commercial line insurance for the state of New Mexico serving the communities of Albuquerque, Rio Rancho, Edgewood, Tijeras, Cedar Crest, Sandia Park, Golden, Madrid and Cerrillos.