Directors and Officers Liability Insurance is insurance payable to
the directors and officers of a company, or to the corporation
itself, to cover damages or defense costs in the event they are sued
for wrongful acts while they were with that company. Directors and
Officers Liability insurance is commonly referred to as D&O in the
insurance industry.
Testimonial
"As a new non-profit organization in Orange County finding an appropriate insurance provider can be a daunting task. Tim Pine offered personalized service and attention that helped us tremendously in the beginning stages of our organization’s operations. The Arroyo team understands our distinctive business model and offers insurance for all of our needs. "
Sara M. V.P., Non-profit Administration Company
Many corporate boards require Directors and Officers insurance
policy to be put in place due to the fact that they place the
operations of their business in the hands of these individuals. D&O
Insurance protects the California company from liability claims from
individuals who claim that a director or officer conducting business
in the name of the corporation cause harm to them or breached a
legal duty to them. D&O is similar to E&O insurance in that it can
provide protection for claims that are the result of errors in
judgment.
D&O Insurance policies are available in three types, including:
• Public
• Financial Institutions
• Private and
Non-Profit
Typical sources of claims include shareholders,
shareholder-derivative actions, customers, regulators, competitors
(for anti-trust or unfair trade practice allegations).
Example of how Directors and Officers coverage can protect your
company.
2. If your California business is operated by directors or officers,
D&O insurance will cover your company and provide you with coverage
for defense counsel in the event of a claim or trial.
3. If your California company is
privately-held, you may be at risk
for employment practice claims, such as discrimination, sexual
harassment or civil rights violations. D&O insurance policies can
provide your company with coverage in the event of these claims.
DETROIT—Automaker General Motors Corp. has some directors and officers liability insurance to cover its portion of a proposed $303 million securities fraud class action settlement.
Advertisement
In its Aug. 7 10-Q filing for the second quarter, Detroit-based GM disclosed that it reached a $277 million settlement in July with plaintiffs that accused the company of improper accounting, overstating income and other misdeeds between April 13, 2000, and March 30, 2006.
Read More...
Posted On: Aug. 08, 2008 3:00 PM CENTRAL
Dave Lenckus
SAINT PAUL, Minn.--(BUSINESS WIRE)--In today’s unpredictable economic and financial environment, directors and officers, now more than ever, realize the need for personal asset protection.
Travelers (NYSE: TRV) Bond & Financial Products introduces its enhanced Broad Form PLUS+SM
Directors and Officers Liability policy. When other sources of indemnity are unavailable or unable to respond, this policy offers superior personal asset protection for directors and officers when it’s needed most.
“Directors and officers have come to rely on D&O policies for personal liability protection; however, new and emerging risks have created the need for a broader coverage that exclusively protects individuals who run the day-to-day operations of organizations as well as those who make boardroom decisions,” said Cary Meiners, D&O Product Manager for Travelers. “Broad Form PLUS+ was designed to meet those needs and offer our customers a state-of-the-art policy that helps them manage their business, while protecting their personal assets.”
Read More...
May 15, 2009, 5:06PM EST - By Victor F. Mustelier
Crisis Poses New Risks to Directors
A prudent choice is to hire counsel or a sophisticated broker to help navigate the different D&O-coverage options
Directors and officers need protection for their personal assets. The need is especially great now, in the wake of the financial crisis, which has opened the door for government investigators and the plaintiffs' bar to seek to hold corporate officials responsible for investors' losses. In this climate, liability insurance tailored narrowly to the needs of directors and officers is an option every corporate board should consider.
Read More...
Report: D&O Market Braces For Steep Downturn
December 9, 2008
The directors and officers (D&O) liability insurance market appears
headed for a sharp underwriting downturn beginning with 2008
results, analysts said in a new report released this week. Analysts
at A.M. Best Co. believe the D&O market has remained highly
competitive in 2007 and 2008, and this, combined with significantly
higher frequency and severity of claims, strongly suggests
significant underwriting deterioration lies ahead for most D&O
writers.
Read More...
We help our clients reduce expenses while maintaining or improving
their over all insurance coverage.
- Arroyo has been in operation since 1986
- Choice - Over 35 A Rated Carriers
- Dedicated account manager
- 4 Hour turn around on certificates
- Loss prevention program
- Workers Comp Claims Management
- Personalized Risk Assessment
- 98% Client Retention rate
