Directors and Officers (D&O) insurance is designed to safeguard the personal assets of a company’s directors and officers, as well as the organization’s assets, by covering loss indemnification and providing financial support for defense costs in legal actions and investigations.

D&O product flyer

What we cover:

  • Shareholders, investors, partners and members 
  • Customers, clients and consumer groups 
  • Other third-party claims against Directors and Officers (including competitors) 

What we write:

Why buy Directors and Officers coverage?

  • Cost of defending corporate lawsuits may exceed the net worth of most private companies
  • Judgments can be financially crippling 
  • Corporate indemnification may not be available 
  • Adverse shareholders and other potential claimants may exist 
  • Bad business decisions are likely to be more visible due to small business environment thus attracting the attention of shareholders, regulators and others 
  • Business decisions made by D&O’s can quickly impact the finances and operations of a company 
  • D&O’s work in demanding environments as they cover more corporate duties 
  • Unique conflicts of interest may exist due to complexity of responsibilities 
  • Companies will have a difficult time attracting qualified individuals to their Boards without D&O coverage 

Applications

Applications

Understanding coverage
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  • Full entity coverage for the insured organization 
  • Broad coverage for most private securities claims 
  • Punitive damaged coverage (most favorable venue language) where insurable 
  • Contract exclusion applies only to the company 
  • Additional limit available for non-indemnifiable acts 
  • All entity exclusions carved back for security holder litigation 
  • Outside directorship coverage for both for and not for profit organizations 
  • Functional equivalent coverage for foreign entities 
  • Broad definition of claim 
  • Broad definition of Loss 
  • No failure to maintain insurance exclusion 
  • Final adjudication requirement in dishonesty exclusion and personal profit exclusion 
  • Pollution exclusion amended to cover shareholder derivative actions 
  • Broad carve backs as respects the Insured vs. Insured exclusion, including claims brought by any former director or officer of the company solely in their capacity as a securities holder and claims brought or maintained by any bankruptcy trustee 
  • No Retention (when EPL Coverage Section is elected) - where available
  • Duty to defend form 
  • Worldwide coverage 
  • Coverage non-cancelable by Underwriters except for non-payment of premium. 
  • Broad definition of Insureds, including coverage for Directors and Officers, employees as well as the corporate entity and any such organization as a debtor -in-possession or a bankruptcy estate of such entity. 
  • Severability as respects all exclusions and the application. 
  • Spousal/domestic partner extension 
  • Broad definition of subsidiary to include automatic coverage for newly created or acquired subsidiaries with no threshold or reporting requirements. Automatic coverage for joint ventures. 
  • Multiple year run off and discovery period options offered at time of quote. 
  • Bilateral discovery 
  • No Consent to Settle clause 
*Note: the above coverage highlights are for illustration purposes only and should not be construed as policy interpretations. 

Terms

  • $5MM in capacity for each coverage section. Options for combined or separate limits of liability are available on every account 
  • $0 retention on the Directors and Officers and the Fiduciary Coverage Sections if the Employment Practices elected
  • Competitive retention options available for Employment Practices Coverage
  • Additional limit available for non-indemnifiable acts on Directors & Officers
  • Additional Limit for Defense Costs is available on Employment Practices
  • Duty to defend with no hammer Consent to Settle clause

Underwriting

Eligible and ratable online submissions will not be referred to an underwriter unless the risk has either claims or a net loss greater than $3MM. Some of our underwriting benefits include:

  • Simplified application 
  • No financials 
  • No handbooks 
  • No articles of incorporation needed on most accounts

Target classes

E-Risk Services specializes in private company D&O insurance for many types of organizations, including real estate, high-tech, biotech, start-ups or long-established organizations.

Some, but not all, of the classes of business E-Risk insures are listed below:

  • Accountants  
  • Advertisers  
  • Alternative energy  
  • Automotive services  
  • Collection agencies  
  • Contractors   
  • Co-ops  
  • Daycare centers  
  • Distributors   
  • Defense contractors  
  • Employment/staffing firms  
  • Franchisee and franchisor   
  • Information technology   
  • Insurance agents/brokers  
  • Life sciences  
  • Manufacturers  
  • Medical billing  
  • Personal services  
  • Professional services organizations   
  • Retail   
  • Real estate   
  • Restaurants  
  • Telecommunication   
  • Transportation services
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Claims examples

Each claim is unique and requires a review of your policy terms and conditions, but you can learn more about past claim scenarios for many of our product offerings to understand potential outcomes.

Read claims examples

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