Personal Finance Essentials
Who D&O Liability Insurance Protects
D&O Insurance > Who D&O Liability Insurance Protects
D&O insurance is broader in scope than most people realize. It does not apply only to executives at large publicly traded corporations – it extends to any individual serving in a leadership or governance capacity across a wide range of organizations.
Corporate Board Members
Individuals serving on the boards of for-profit companies of any size, who can be personally named in shareholder lawsuits, regulatory actions and other claims
Executive Leadership
CEOs, CFOs, COOs, presidents and other senior officers whose business decisions are subject to scrutiny from shareholders, regulators and other stakeholders
Directors of Non-profit Organizations
Trustees and board members of charities, foundations and other nonprofits who often serve voluntarily and may not realize they carry the same personal liability as their for-profit counterparts
Private and Public Company Executives
Both categories face significant exposure, though the nature of the claims differs; public companies face shareholder litigation while private companies often face claims from investors, creditors and partners
Educational Institution Leaders
University trustees, school board members and administrators who make decisions about budgets, employment, admissions and institutional policy
Government Agency Administrators
Public officials and agency heads whose decisions in their official capacities can give rise to legal claims
A common misconception is that serving on a nonprofit board – often a volunteer role – carries no meaningful liability. In fact, nonprofit directors face the same legal duties as corporate directors, including the duty of care and the duty of loyalty. Claims involving misuse of funds, conflicts of interest or poor governance decisions are not uncommon in the nonprofit sector, and without D&O coverage, those claims can have personal financial consequences for volunteer board members who never anticipated any exposure at all.