TUESDAY, MAY 31, 2022
Directors and officers liability (D&O) insurance can provide financial safeguards for your directors, officers and key employees and for your insurance agency itself. It can offer coverage if lawsuits arise regarding actions their individuals take while in their management roles.
The professionals at U.S. E&O Brokers can help your agency secure D&O insurance. Contact us today for more information.
Does My Insurance Agency Need to Purchase D&O Insurance?
The actions and decisions of your insurance agency’s directors and officers may lead to lawsuits. Employees, clients, competitors or other parties may bring claims regarding wrongful acts such as: 
Directors and officers may be named personally in these suits. D&O insurance may provide coverage for them and their spouses so they don’t lose their personal assets through these cases.
Additionally, D&O may provide coverage for the agency. It may pay legal costs for defending directors and officers, or, if the agency is named in the suit, it may cover its legal expenses (e.g., defense costs).
D&O insurance may also be useful as a recruiting tool. Prospective directors and officers may be more attracted to organizations that carry D&O insurance as it can provide them with peace of mind in knowing their assets are protected.
D&O can also supplement your agency’s general liability policy or errors and omissions insurance. Make sure to discuss specific coverages and exclusions with your agent. Typically, D&O insurance does not cover fraud and illegal acts.
Who Is Eligible for Coverage and When Are They Covered?
Future, past and present corporate directors, officers, managers and other key employees of an insurance agency may be eligible for coverage.
D&O insurance is typically written as a claims-made policy. This means that it will generally provide coverage as long as a claim is made while the policy is active and the occurrence that gave rise to the claim occurred after the retroactive date (if one is specified in the policy).
How Much Does D&O Insurance Cost?
Several factors impact the cost of D&O insurance. For example, the size of an agency, its revenue and debt may influence premiums, as well as an agency’s claims history and how long the agency has been in business.
Contact Us for More Information
The knowledgeable team at U.S. E&O Brokers is ready to assist your agency in obtaining the D&O insurance that is right for you. Contact us today for more information or a quote.
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It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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