Directors & Officers Liability Insurance—Protecting Those Who Serve

Donating your valuable time and considerable energy to act as a director or officer on a company board is often its own reward. It should not, however, put you or your personal assets at risk in the event of a lawsuit. Directors & Officers Liability Insurance (D&O) is there to protect those who serve.

Not every decision made by a board is going to be popular. In fact, those whose lives are impacted by your decision as a board director or officer may allege harm and make a legal claim against you because of an action you’ve taken. As a board member, D&O Insurance covers your personal liability as well as reimburses the company for costs incurred defending you, along with any financial settlement paid out to the suing party.

The Thomas Ward Group cares about our socially active clients who donate their services to these endeavors. That’s why we want to make sure you’re protected.

D&O Coverage: For Your Own Good

As you work on a board for the good of a company, so too, a D&O Insurance policy works for your own good. This coverage provides many important protections for a board’s director or officer, including the cost of legal defense and financial losses. Extensions to the main policy can also include administrative costs incurred during the process of an investigation. Some common risk situations include:

  • Employment actions & HR problems
  • Shareholder activities
  • Reporting mistakes
  • Flawed or inadequate financial disclosures
  • Misrepresentation in a prospectus
  • Decisions that exceed the authority granted to a company officer
  • Compliance failures

Of course, a D&O policy does not cover illegal actions or activities intended to bring personal, financial gain to a board director or officer. Other coverage exclusions include:

  • Fraud
  • Deliberate non-compliant actions
  • Illegal compensation
  • Property damage and bodily harm
  • Pre-existing legal action
  • Claims made under a prior policy or covered by other insurance

Lending a Helping Hand—Call Us Today for a Free Quote

The Thomas Ward Insurance Group has worked with many company boards in the past, lending a helping hand to ensure protection for those who offer their services to a board. We believe that it’s critical to protect the private assets of those who assist in a public manner. Call 312.254.1500 today to get a quote or learn more about directors and officers liability insurance by contacting us online.