Directors and officers liability insurance (D&O) policies are nonstandard, so they can vary greatly from insurer to insurer. In this article, we’ll discuss some of the many provisions that could appear in your D&O policy and what they mean to your coverage. The Typical D&O Policy Contains Two and Sometimes Three Parts: Part A covers...
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Liability Insurance for Nonprofits
November is Nonprofit Awareness Month. If you manage or serve on the board of one of the estimated 1.58 million nonprofit organizations in the U.S., thank you for your service. To ensure your organization can continue its good work, you have an obligation to ensure it has taken steps to reduce its liability risks. One...
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Corporations of All Sizes Need D&O Insurance
D&O insurance helps companies of all sizes attract and retain top executive talent. Directors and officers liability insurance (D&O) covers corporate directors and officers from liability for negligent acts, omissions and misleading statements that harm employees or shareholders. Directors have serious responsibilities. When acting in their official capacity, they owe the corporation: A duty of...
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Understanding D&O Insurance
What keeps directors up at night? Many worry about personal liability from their board service. In a 2011 survey, 76 percent of CEOs surveyed said they were not confident for-profit boards had adequate insurance coverage, and 70 percent said the same about nonprofit boards. Only 59 percent of respondents said their board had directors and...
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D&O Basics
Wealth and high community profiles make executives more vulnerable to lawsuits than other individuals. Typical claims against directors and officers include employment-related liability, such as discrimination, harassment and wrongful termination; mismanagement of assets; and failure to provide services. State law or your corporate bylaws might require corporations to “indemnify,” or reimburse, directors and officers for...
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