Does Your Company Need Directors and Officers Insurance?


Both for-profit and non-profit organizations need to protect themselves with Directors and Officers Insurance. For educators serving on organizational boards, this is an even more imperative coverage. Considering the amount of liability those within the education field endure, your organization is left completely unprotected and ripe for a reputation management crisis without the proper insurance tools in place.

Who Does D&O Insurance Benefit?

Also commonly referred to as D&O Insurance, Directors and Officers coverage is routinely purchased by the organization that offers the board or directors’ positions. It can also be purchased as a split, or in rare cases by the actual individual serving on the board. The policy will cover defense expenses and can include financial damages or settlements awarded by a judge. A D&O policy does not, however, cover expenses related to lost wages, taxes, penalties, or fines.

D&O or Professional Liability Insurance?

Often confused with professional liability insurance or even errors and omissions policies, a D&O policy differs because it relates specifically to the executive team and board members’ performance and duties. Directors and Officers for educators, or any other profession, is an important tool, but it should not be utilized as the only insurance coverage an organization employs. You will need other coverage, for instance, to protect against performance failures or negligence.

Consider D&O insurance as you consider the team that will be the face of your organization. There are so many outside factors that come into play within today’s world. Make sure your company or non-profit is completely protected.

This post was written by , posted on August 11, 2015 Tuesday at 1:30 pm