Directors & Officers Liability /Management Liability

Directors & Officers Liability/Management Liability coverage protects the assets of your organization as well as its directors, officers, volunteers, and employees for liability that arises out of their leadership roles and decision making on behalf of the organization. The basis for such claims usually stems from an allegation of “Wrongful Acts” against the organization or the insureds by employees, vendors, members, or other third parties resulting from the insureds involvement in managing the company.

What It Covers

Wrongful Acts means any actual or alleged act, error, omission, misstatement, misleading statement, neglect or breach of duty by the directors, officers, or the organization in the discharge of their duties. This includes certain types of actual or alleged wrongful acts pertaining to employment practices, personal injury, and to third-parties.

Directors & Officers Liability often also includes Employment Practices Liability coverage that protects the organization against claims of wrongful termination, violation of employment laws, discrimination, and other actual or alleged employment related claim matters.

Coverage may also pertain to Third Party Wrongful Acts for actual or alleged discrimination against a third party based upon such third party’s race, color, religion, age, sex, national origin, disability, marital status, sexual orientation, military status, or other protected status. Coverage also often applies for actual or alleged sexual harassment; and also for actual or alleged civil rights violations against a third party.

Disclaimer Notice

This basic information has been prepared as information only. The actual insurance policies are subject to definitions, duties, exclusions, limitations, and various other terms and conditions. This information does not amend, extend, or alter the coverage afforded by the actual insurance policies.

Common Allegations for
D&O Claims

  • Noncompliance with laws and regulations
  • Negligence
  • Maladminstration or lack of control
  • Breach of trust or fiduciary duty 
  • Inadequate or inaccurate disclosure 
  • Employment related
  • Breach of contract
  • Creditor claims
  • Failure to comply with workplace laws
  • Misrepresentation
  • Breach of bylaws
  • Failure to maintain financial records
  • Discrimination

Questions About D&O Coverage?

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(800) 344-7335