Directors and Officers Insurance
D&O covers claims against the people who run a company for decisions they made in that role — and it covers their personal assets, which is the point. Without it, a lawsuit over a management decision can reach the individual.
It Isn't Just for Public Companies
Private companies, family businesses, and nonprofit boards all get claims. Common sources: investors and shareholders, competitors, regulators, vendors, and employees.
When It Comes Up
A minority owner alleges the majority ran the company to their own benefit. An investor claims misrepresentation during a raise. A regulator opens an inquiry into how a decision was made.
Why Nonprofit Boards Should Care
Volunteer directors are personally exposed.
What It Doesn't Do
It isn't employment practices liability. Claims for wrongful termination, discrimination, or harassment fall under EPLI, which is sometimes packaged with D&O and sometimes separate. Confirm which you have. It also doesn't cover professional service errors — that's professional liability.
Questions People Ask
Does a small private company need D&O?
It depends on who could sue the people running it. Outside investors, a board, co-owners, or a regulated industry all raise the answer toward yes.
Is D&O the same as EPLI?
No. EPLI covers employment claims like wrongful termination and harassment. They're sometimes sold together but they're different coverages.