What is Directors and Officers D&O coverage?

Question #55 in the 100 insurance questions in 100 days series. By Steve Ladd of Horan Companies, Inc. in Baldwinsville, NY.

Director’s and officer’s coverage is designed to protect the liability of Board Members or officers of a Board who serve in a voluntary manner on an organization. So, think in terms of your local Chamber of Commerce or another philanthropic group who is there to raise money or put on events ultimately that may have some impact on the local community.
Those particular people run a risk of needing to have some level of liability coverage due to the liability exposure that they incur by being a Board Member.
Now, usually what happens is the DNO policy covers the Board itself as an entity and not necessarily the individual person per se who is serving on the Board. So Board Members concern come and go, but ultimately the policy remains and protects everyone who is on that policy or on that Board.
So, sometimes you may have to find that if your Board is expanding and has more members that what it originally had, then it may be a good idea to contact the insurance company or your agent and discuss whether or not the protection is adequate or might need to be increased.

Watch the video for more.

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