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Specialty Insurance Lines - Management Liability for Directors & Officers 

Specialty Insurance Lines - Management Liability for Directors & Officers

Specialty Briefs

Directors & Officers Insurance protects company owners, managers, officers and directors’ personal assets that are at stake when making decisions affecting the company or non-profit organization. 

A suit can be brought against the Directors  & Officers by a third party or the company itself.  Private company examples range from suits brought by investors claiming mismanagement of company assets to an outside party bringing legal action for hiring away employees. 

Non-profits purchase D&O to protect their board members who diligently, and often voluntarily, serve the cause of the organization.  Fund raising, community awareness, and reputation are important to a non-profit and they often select influential board members.  More often than not, these board members have significant wealth and the D&O policy allows them to make decisions freely without the fear of personal liability.

Why do companies and organizations purchase D&O Insurance?

• Managers make mistakes.
• Protect those who help guide your business and your decisions.
• Allows management to make decisions more freely.
• Protects the business from a variety of alleged wrong doing by competitors, customers and suppliers.
• Allow companies and non-profits attract talented board members who wish to protect their personal assets.   

Who buys Directors & Officers Insurance?

• Non-profits that want to protect their board members and show goodwill.
• Start-up companies to protect their investors.
• Small & medium sized companies that want to protect their individual assets if management decisions bring poor results.

Who can make a claim against the D&O policy?

• Creditors
• Regulators
• Employees
• Suppliers
• The company itself

Contact Sherwood Bowditch or Ben Winters at (804) 746-5178 to find out more about D&O insurance and request a proposal. 

Please feel free to browse our Specialty Line Best Practices Briefs  (available in PDF).

Cyber Risk for Small Business 


Winters-Oliver is a specialty insurance agency offering property & casualty insurance and employee benefits to small and middle market businesses.