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Directors and officers insurance (DO) is a form of EO or professional liability insurance. It specifically provides coverage to the directors, officers, executives and other higher-ups at a company. DO insurance protects the personal assets of the people who manage or oversee a company.
Side A coverage is the insuring agreement within a DO policy that provides first dollar coverage (in the form of defense costs and settlements) for claims asserted against directors and officers, whose costs are not indemnified or advanced by the corporate entity.
DO insurance typically covers legal fees, settlements, and financial losses when the insured is held liable. Common allegations covered include bdocHubes of fiduciary duty, failure to comply with regulations, lack of corporate governance, creditor claims, and reporting errors.
Directors and officers (DO) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company.
Directors and officers insurance, also called DO liability insurance, is insurance that protects a companys leaders from personal financial losses if they are sued in business-related lawsuits.
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The following are several examples of Management Liability (DO) claims. Misrepresentation. Directors and officers at a company failed to disclose material facts and provided inaccurate and misleading information to their investors. Credit Fraud. Stolen Corporate Secrets. Recruiting Sales Executives. Investment Agreement.
The following are several examples of Management Liability (DO) claims. Misrepresentation. Directors and officers at a company failed to disclose material facts and provided inaccurate and misleading information to their investors. Credit Fraud. Stolen Corporate Secrets. Recruiting Sales Executives. Investment Agreement.
Side A coverage covers directors and officers for claims where the company refuses to or is financially unable to pay for indemnification. Side B coverage covers the losses of directors and officers when the company does grant indemnification.
DO Policies Are Claims Made Directors and officers must understand that DO policies are claims made, meaning that coverage exists only for claims made during the time period the policy is in effect. If a company begins to encounter challenging circumstances, it is essential that the policy not lapse.
Unlike your business, they are not protected by general liability or professional liability policies. If theyre sued, DO insurance can help pay the cost of hiring an attorney, judgments, settlements, and other expenses related to the lawsuit.

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