Start with the purpose of the coverage
Directors and officers liability coverage can address specified claims arising from governance and management decisions, subject to the insured-person, organization, claim, wrongful-act, exclusion, retention, limit, and reporting provisions of the policy. Nonprofits should evaluate entity coverage, individual protection, employment-related allegations, fiduciary exposure, prior acts, and defense arrangements.
Prevent frequent losses
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
Reduce severity when an incident occurs
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
Document consistent management oversight
Connect this decision to the insured operation, credible loss scenarios, current information, policy wording, and requested protection.
What the policy may help address
Certain claims against directors, officers, trustees, and leadership
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Specified organization or entity claims where included
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Defense costs for covered management liability allegations
Confirm covered causes, insured parties, locations, limits, deductibles, conditions, and exclusions in the actual proposal and issued policy.
Details to examine for this decision
- Claims-made trigger, retroactive or prior-and-pending date, and reporting duties
- Defense inside or outside the limit, retention, allocation, and insured-versus-insured wording
- Employment practices, fiduciary, crime, cyber, professional services, and bodily injury exclusions
Information to prepare
A complete submission helps distinguish the account and reduces avoidable follow-up. Prepare current records rather than relying on estimates from a prior policy period.
- Organization documents, mission, programs, locations, and financial statements
- Board roster, governance practices, meeting records, and conflict policies
- Employee counts, volunteers, grants, contracts, claims, circumstances, and prior coverage
Questions the review should answer
How does the program address claims-made trigger, retroactive or prior-and-pending date, and reporting duties?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
How does the program address defense inside or outside the limit, retention, allocation, and insured-versus-insured wording?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
How does the program address employment practices, fiduciary, crime, cyber, professional services, and bodily injury exclusions?
Document the answer in the proposal, applicable forms, endorsements, schedules, or written underwriting confirmation. Do not rely only on a certificate or marketing summary.
Frequently asked questions
What should a business prepare for a Directors & Officers (D&O) Liability loss-control priorities review?
Useful starting information includes organization documents, mission, programs, locations, and financial statements, board roster, governance practices, meeting records, and conflict policies, employee counts, volunteers, grants, contracts, claims, circumstances, and prior coverage. The specialist may request additional details based on the operation and available insurance markets.
Why should Directors & Officers (D&O) Liability be reviewed separately from other policies?
Directors and officers liability coverage can address specified claims arising from governance and management decisions, subject to the insured-person, organization, claim, wrongful-act, exclusion, retention, limit, and reporting provisions of the policy. Nonprofits should evaluate entity coverage, individual protection, employment-related allegations, fiduciary exposure, prior acts, and defense arrangements. The policy should also be coordinated with related property, liability, vehicle, people, contract, and continuity exposures.
Coverage descriptions are general and do not amend a policy. Eligibility, availability, limits, deductibles, exclusions, definitions, and terms vary by risk and insurance market. Actual policy documents control.