Previously exclusive to publicly-traded companies, directors and officers liability insurance is now available for private companies and non-profit associations. In fact, any organization with directors and officers should carry this specialized insurance coverage. It provides personal financial protection to directors and officers from liability claims connected to their corporate positions. This type of coverage also protects the corporation against losses.
Personal Liability of Officers – What is Covered?
For directors and officers liability insurance, definitions of loss include damages, judgements, awards, settlements and defence costs, but do not include fines, taxes or penalties. These are uninsurable matters under the law.
Whether you are a director, chairman of a board or have been asked to sit on a board of an organization that does not carry directors and officer liability insurance, we strongly recommend you contact us today to put this essential coverage in place. At HDF, We Work For You!