Directors & Officers Liability
Directors and Officers Liability Insurance (D&O) provides coverage for “wrongful acts” by an organization’s Board of Directors. Wrongful acts typically include coverage for actual or alleged errors, misleading statements and neglect or breach of duty. The policy is written to protect the personal assets of an organization’s directors and officers against catastrophic financial loss. It also provides reimbursement to the organization when required or allowed by law. The Directors and Officers Liability Insurance policy typically covers claims arising from governance and management of the organization.
Things to Know
Nonprofit board members have the same duty of care as private or public corporate boards.
All Directors and Officers personal assets are at risk.
Claimants include prospective, current and former employees. They also include clients or customers, volunteers, governmental agencies, donors and third parties.
Claims Made: A claim must occur and be reported after the effective date (retroactive date) of the policy. In addition, the policy must be in force in order for a claim to be covered.
Discovery Period: This is the time period after a policy has been non-renewed or cancelled. The organization can report claims for wrongful acts committed prior to the effective date of the cancellation or non-renewal.
Entity Coverage: The entity is the organization.
Based in San Gabriel, California, The John L Raya Insurance Group understands the business insurance needs of our clients. Please call us at 626-570-8611 or email us today to find out how to protect your business.