What Is Directors and Officers Insurance?

Directors and officers insurance provides protection for directors, officers, and other individuals involved in the management of public, private, and not-for-profit entities from lawsuits alleging improper performance of their duties. Claims that may trigger coverage could be made by employees, stockholders, clients, regulators, and competitors.

For businesses seeking comprehensive protection, directors and officers insurance in Arlington, VA is vital. At Schleifman Law, we offer expert guidance to ensure that your key decision-makers are financially protected against potential legal claims, allowing your business to operate with confidence.

What Does D&O Insurance Cover?

D&O insurance covers a variety of claims that can be brought by employees, stockholders, clients, regulators, or competitors. These claims may involve allegations such as wrongful termination, breach of fiduciary duty, or misrepresentation. Since most directors and officers Liability Insurance policies are written on a claims-made basis, coverage applies only to claims made during the active policy period. Having the right coverage ensures that directors or officers are financially protected in case of a lawsuit.

Coverage Options in D&O Insurance Policies

Many D&O policies contain four types of coverage.

– Side A Coverage – Protects individual officers and directors when the company cannot indemnify them.

– Side B Coverage – Reimburses the company when it indemnifies officers and directors.

– Side C Coverage – Covers the company itself for certain claims, such as securities litigation.

– Side D Coverage – Provides limited coverage for investigative costs related to shareholder derivative demands.

Directors And Officers Insurance Policies And Coverage Disputes

A number of coverage disputes arise under directors and officers insurance policies including:

– Application of the “insured vs. insured” exclusion

– Fraud, dishonesty, or criminal conduct exclusions

– Allocation of policy benefits in bankruptcy cases

– Interpretation of “wrongful act” and “claim” definitions

Contact Us for Expert Insurance Guidance

Schleifman Law is dedicated to providing expert guidance and comprehensive legal support for your insurance needs. If you have any questions concerning our directors and officers insurance in Arlington, VA, or want to know more about our insurance practice, please contact our insurance attorney for a free telephone consultation at 703.528.1021.