27 Monmouth St Red Bank, NJ 07701 (732) 649-1600 Service@BLInsuranceAdvisors.com

Directors and Officers Insurance

Directors and Officers Insurance with Blue Lion Insurance Advisors, LLC located in Red Bank NJ

Directors and Officers Insurance

In today’s business climate of corporate transparency and accountability, organization’s as well as directors and officers face a myriad of employment-related exposures.

Protect Your MVP’s

Regardless of your company’s size, the legal cost to defend your entity as well as director’s and officers are substantial, as are the potential penalties that can be personally incurred. Due to the personal liability risk (not covered under a personal insurance policy), protecting the board can be a challenge.

To help ensure both your officers’ and the company’s well-being, a directors’ and officers’ liability insurance (D&O) policy is part of a comprehensive risk financing strategy.

What Protection Does It Offer?

Unlike a commercial general liability insurance (CGL) policy that provides coverage for claims arising from property damage and bodily injury, a directors’ and officers’ liability (D&O) policy could provide coverage for a “wrongful act,” such as an actual or alleged error, omission, misleading statement, neglect or breach of duty.

A D&O policy provides defense costs and indemnity coverage to the entity listed on the policy, which may include:

  • Coverage for individual directors and officers
  • Reimbursement to the business for a contractual obligation to indemnity directors and officers who serve on the board
  • Protection for the organization or entity itself

Indemnification provisions are typically included in the bylaws of the organization. While these are an important risk component, small to midsize privately held companies often do not have the financial resources to fund the indemnity provisions, making the bylaws hollow. A D&O policy could provide an extra blanket of security in the event of a covered loss.

Coverage Inclusions

A “fraud” exclusion is typically included in a D&O policy, which eliminates coverage for losses due to dishonest or fraudulent acts or omissions, or willful violations of any statute, rule or law. There are many additional forms of coverage to adequately protect directors and officers, including:

  • Entity coverage
  • Payment priority for insured persons
  • Severability of the insured as well as severability of the application
  • Coverage over time—for past, present, and future directors and officers
  • Pay on behalf clause

The next step is easy!

Call us today at (732) 649-1600 to learn how our advisors could get you the right coverage, at the right price, and superior service. You can also Request A FREE Insurance Quote on our site or Contact an advisor for more information.