Directors & Officers Liability Insurance
Directors & Officers Liability Insurance is an essential coverage for the Officers and Members of the Board for not-for-profit and for-profit firms and organizations. A directors and officers liability policy specifically provides coverage for a “wrongful act,” such as an actual or alleged error, omission, misleading statement, neglect or breach of duty. A directors and officers liability 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
A directors and officers liability insurance policy can provide an extra blanket of security in the event of a covered loss.
When do I need Fiduciary Liability Insurance?
Are you a fiduciary? Are your personal assets at risk? Are you subject to lawsuits, fines, and penalties? Many people are and don’t know it.
If you are an owner or officer who makes decisions about your company’s 401(k) plan or other qualified employee benefit plan(s), odds are, your personal assets are at risk. Under the ERISA act of 1974 (Employee Retirement Income Security Act), fiduciaries can be held personally liable for losses to a benefit plan incurred as a result of their alleged errors, omissions, or breach of their fiduciary duties. Employment Liability Insurance does not cover all situations of fiduciary responsibility, especially those regarding imprudent investment of funds.
Contact us today to learn more about Directors & Officers Liability Insurance and commercial insurance options for your business.