What Does DO Insurance Cover?

First time buyers often understand they need a directors & officers insurance policy without fully understanding what kinds of claims this insurance supports. D&O claim examples run the range from oversights to acts of bad faith by the key persons who have been entrusted with the helm of an organization. Policies are available for businesses, governments, and non-profit entities, and each is slightly different, so it helps to understand what kinds of claims you can make when faced with a lawsuit.

Examples of Claims Made With D&O Insurance

The details vary quite a bit, but general examples of claims made with these policies include:

  • Wrongful termination claims by employees under the purview of individual directors or officers
  • Violation of workplace laws by organization leadership
  • Allegations of withholding information from other key personnel or directors
  • Investor lawsuits alleging misconduct or bad faith

Most of these D&O claim examples are universal to policies regardless of their organization type. The big difference is when it comes to nonprofits, governments, and businesses. Obviously, only businesses have investors, but nonprofits and governments could face similar actions from major grant providers or taxpayers, so parallel coverage exists in the D&O policies written for those organizations. For more information about prices or examples of claims specific to your industry, contact a D&O insurance provider today and review your coverage needs.