Unlike a commercial general liability insurance (CGL) policy that provides coverage for claims arising from property damage and bodily injury, a directors’ and officers’ liability (D&O) policy specifically provides coverage for a “wrongful act,” such as an actual or alleged error, omission, misleading statement, neglect or breach of duty.
A D&O policy provides defence costs and indemnity coverage to the entity listed on the policy, which may include the following:
What Protections Does it Offer?
Note: A “fraud” exclusion is typically included in a D&O policy, which eliminates coverage for losses due to dishonest or fraudulent acts or omissions, or wilful violations of any statute, rule or law.
Did You Know?
Statistics show that shareholders and employees are the most likely group to sue private companies. Other parties may bring suits, such as the corporation itself, competitors, creditors, regulatory bodies, etc.
Insurance brokers do not work for an insurance company, they work for you. That’s the key thing that separates them from all other purchase options. It means you have more advice, more choice, better pricing and a representative that’s on your side in the event of a claim.