Directors & Officers

Directors & Officers Liability Coverage is a highly complex area of insurance that covers businesses for the wrongful acts of their directors and officers and, at times, employees. Serving as a director or officer of a corporation bears a greater financial risk than ever before as they can be held personally liable for claims. Ever evolving laws, including the Sarbanes Oxley Act and state-by-state unfair trade practices acts, have led to an increase in civil and regulatory actions making more extensive insurance coverage for directors and officers a requirement for every company.

SDV works with our clients in reviewing their policies to ensure that they are receiving the expected coverage for their needs when purchasing a policy and when claims arise.

Potential Risks:

  • A broad potential claimant and claims base make claims likely and diverse
  • Insolvency of target companies make corporate indemnification assurances meaningless
  • Having a D&O policy in place can help defray this risk
  • Various exclusions may bar coverage for part or all of claims:
    • Bodily Injury and Property Damage Exclusion
    • Pollution Exclusion
    • Intentional Acts Exclusion
    • Prior Notice Exclusion
    • Publicly Traded Securities Exclusion
    • Employment Practices Exclusion
    • ERISA Liability Exclusion
  • Duty to Defend vs. the Right to Defend
  • Poor drafting of underlying complaints can lead to improper denials by the insurance carrier because the facts of the claim are unclear, having a broad coverage grant will mitigate some of this risk

Some of our clients include:

  • R.H. White Companies
  • Camuto Group
  • Center for Special Care
  • Control Building Services
  • Turner Construction Company
  • University of Bridgeport
  • YMCA of Greater New York