Directors & Officers Liability Church

Directors & Officers is a type of liability insurance covering officers, board members, and employees for claims made against them while carrying out their duties.

Get a Quote Call us at (317) 253.1155

Customer

Non-profit boards
Community Associations such as a Homeowners Association or Board
For-profit companies with a board of directors

Coverage

A-side coverage. This part covers directors, officers, and sometimes employees, for defense
costs, settlement fees, or judgments if the company cannot indemnify them, such as if the
company has declared bankruptcy.
B-side coverage. This covers the company for directors’, officers’, and employees’ losses when
the company does indemnify them.
C-side coverage. Also called “entity coverage,” this financially protects the corporation. Entity
coverage may reduce the limits available to protect the individual officers and directors

Cost Factors

Size or type of organization
Amount of debt
Insurance limits
Risk management techniques

Claim Examples

Breach of fiduciary duty loss
Misuse of organization funds – including non-profits
Fraud
Failure to comply with workplace laws
Lack of corporate governance

Do you have a claims made or occurrence based policy. Be careful when switching between types of policies. You may need tail coverage!

Directors and Officers (D&O) insurance is a type of liability insurance for losses suffered as a result of the actions of a organization’s board of directors and executives.

Directors and officers owe a duty of care to the company’s shareholders, customers and employees, members or donors. When they breach that duty of care, usually by failing to exercise reasonable care when making decisions, a D&O policy will cover the resulting damages.

D&O policies are payable to either the directors and officers themselves, or directly to the company. This type of insurance has the potential to cover a wide variety of claims brought against an organization for the actions of its directors and officers.