ISU Sander Jacobs

Commercial Lines

Why Your Business Needs Directors & Officers (D&O) Liability Insurance

Commercial LinesWilfred Ovid OcampoComment

Consumers of today's society have grown increasingly aware of actions of corporation and are demanding corporate transparency and accountability which fall into the responsibility of an organization's directors, officers, and board members. There are countless scenarios where your organization's leaders can fall into lawsuits regardless of your company's size or operations.

Directors and Officers (D&O) liability insurance help lessen the damage and impact caused by the legal costs associated with lawsuits. Not only can this protect publicly traded companies but privately held organizations as well. D&O Insurance can provide the following benefits:


D&O insurance can provide coverage to leaders of private companies for claims typically excluded in General Liability policies such as allegations of wrongful acts, financial mismanagement, errors or omissions in judgement and negligence. These lawsuits come up unexpectedly and legal costs can reach six figures easily - D&O insurance can cover the legal costs and reimburse these expenses in the event of a claim.


D&O claims don't always come from third-party entities; claims can arise from disputes with employees, clients, contractors, and government agencies. Claims from creditors and competitors are also common even for private companies.


With the increasing scrutiny of private companies, D&O insurance can help you stay compliant with regulatory agencies and their ever-changing requirements. Defending against a government enforcement action is expensive - having D&O insurance can help with these types of expenses and would be important to have to ensure that your company can continue to operate and exist.

One D&O claim can be catastrophic for a business so it's important to have proper coverage to protect yourself and your organization - when you're ready to take the next steps in obtaining coverage, contact ISU Sander Jacobs Cassayre to consult with a broker and learn about your options.