Directors & Officers

Whether privately held or publicly traded, for profit or not-for profit, Directors & Officers need to protect themselves and their corporate and personal assets with the right D&O Insurance policy; Reliance Insurance can help with that.

Directors & Officers Insurance

In the modern era, stakeholders and the public are aware of their rights and are proactive about seeking redress when they feel that they have been poorly treated or suffered an unnecessary financial loss, real or perceived. Directors & Officers, whether corporate or not-for profit, must protect themselves by being aware of their fiduciary duties to their stakeholders, the public, and the organizations they serve. A carefully designed Directors & Officers policy is intended to provide support in such situations.

Risk Management

The first step is Risk Management. Most Directors and Officers are aware of their fiduciary duty and the importance of always discharging these duties by:

• Exercising a high duty of care and diligence
• Acting with honesty and in good faith
• Acting in the best interests of the organization

Even the most diligent individual can be exposed to claims and often, Directors and Officers assume they will have indemnity from the corporation or organization they serve, but that isn’t always the case. The organization may be unable or unwilling to indemnify their Directors and Officers for a variety of reasons. A Directors & Officers policy will assist when the organization or corporation cannot.

Key Areas of Directors & Officers Risk Exposure

• Acquisitions, mergers or divestitures
• Succession plans
• Foreign investment (especially in the USA)
• Public offerings
• Management buy-outs
• Reduced dividends
• Waste or mismanagement of corporate assets
• Employee dismissal
• Boardroom dispute
• Breach of contract
• Liquidation of the company
• Change in ownership of the company’s share capital

A solid insurance policy will cover an organization, and the corporation. Talk to Reliance Insurance Advisors – we will craft an insurance policy to give you and your organization the coverage you need.

Are Your Directors & Officers Vulnerable?

The most common allegations requiring defense by directors include:

• Acting beyond the scope of their authority
• Breach of fiduciary duties
• Authorizing excessive company spending
• Failure execute company affairs properly
• Administrative or Judicial penalties

Reliance Insurance has skilled professionals who specialize in Directors & Officers Insurance. Find out more about Directors and Officers trends with Reliance Insurance CEO Chris Ball and D&O Practice Lead, Kelly Chapell.