There are many reasons you should protect yourself with Directors and Officers coverage, but the top 5 reasons are:
- Directors and officers can be held personally liable for claims; organizations increasingly consider personal liability coverage as one of the most important aspects of their D&O program.
- D&O liability claims related to regulatory actions are increasing for all types of organizations, representing 23 percent of claims in 2012.
- Directors and officers increasingly desire additional assurances beyond corporate indemnification — 43 percent desire added protection in the event their company becomes bankrupt and/or insolvent.
- Directors and officers and their respective organizations are susceptible to a wide range of claimants including shareholders, competitors, customers, employees and government entities.
- D&O claims are increasingly common for private companies, public companies and nonprofits: 36 percent of all organizations reported claims in the last 10 years.
Directors and Officers Liability policies have a broad definition of claim and cover the defense costs, settlements and judgments associated with claims. D&O policies not only help provide protection for the assets of the company and the personal assets of its directors and officers, but also help protect the personal assets of a director or officer’s spouse, domestic partner or the deceased director or officer’s estate.
Information gathered by a 2012 Towers Watson Directors and Officers Liability Survey
Published by: The Travelers Indemnity Company