Not all VT Directors and Officers Liability Insurance plans are the same.
Directors and Officers Liability Insurance (often called D&O) is designed for non-profits and other business entities to provide coverage for the organization, and its directors and officers when allegations are made that their decisions were not prudent and caused financial harm. The coverage can include damages, judgments, settlements and defense costs. Fines, penalties, and other uninsurable charges are excluded. Due to the critical nature of D & O coverage, it is crucial for you to know what is and what is not covered.
Whether working or volunteering, you have a right to know how you are protected.
Directors and Officers can be held liable for a variety of risks that include:
- Unauthorized transactions or decisions.
- Misappropriation or misuse of funds.
- Making improper loans.
- Knowledge of illegal or improper acts.
- Fraudulent acts.
Act With Due Diligence
A director or an officer of an organization is obligated to act with due diligence when making decisions for said organization. They can be held liable for inappropriate transactions or decisions that are not authorized by the bylaws. Many believe if they are incorporated they have limited liability protection that provides a legal shield. This is not the case. Directors and officers are responsible for their actions and the actions taken by the organization. Through the purchase of Directors and Officers liability insurance you can protect yourself in the event legal action is brought against you while acting in this role.
We understand that you may have questions about the options available. We invite you to speak with one of our commercial insurance specialists. They can walk you through the insurance shopping process and review your specific needs to find the right company for your directors and officers insurance. Request a free insurance cost review today!
