What is Directors and Officers Insurance?
Leaders who oversee businesses and nonprofits have a lot of responsibility, and they’re sometimes held accountable for their actions. Should they make a poor decision or take an inappropriate action, they may be held personally liable for the consequences that follow. Directors and officers insurance helps protect business and nonprofit leaders in Massachusetts from some of the risks that come with their positions and responsibilities.
Directors and officers insurance is a highly specialized type of liability insurance. It’s generally considered a form of professional liability insurance, but policies can differ significantly from other types of professional liability policies.
Who in Massachusetts Should Have D&O Insurance?
Most leaders of businesses and nonprofits in Massachusetts ought consider the benefits that directors and officers policies provide. This includes C-level executives, presidents and vice presidents, directors, chairpersons and other officers, for all of these people could be accused of causing an organization they lead harm through their actions.
What Incidents Does D&O Insurance Cover?
As is true with most other types of insurance, the exact incidents that any one D&O insurance policy might cover are determined by that policy’s terms, conditions, exclusions and limits. Depending on a policy’s terms and conditions, it may cover some or all of the following incidents:
- Conflicts of interest
- Poor investment decisions
- Issues arising from personnel decisions
- Improper releases of personal or confidential data
- Unlawful acts
- Gross negligence
- Other mistakes leaders might make