Insurance solutions by Rutledge and associates

Director and Officer Liability

often referred to as D&O is insurance which is payable to the officers and directors as reimbursement for losses or as an advancement for defense costs in the event an insured has a loss as a result of legal action for alleged wrong doing as acting officer and/or director. D&O insurance does not cover bodily injury, property damage, dishonest or fraudulent acts, accounting of profits, pending and prior litigation, ERISA claims, pollution and breach of contracts. This insurance protects the personal assets of officers and directors for their actions serving as officers/directors.

  • Side A covers directors, officers, and employees for defense costs, settlement fees, or judgments in the event that the company or non-profit cannot indemnify them, such as if the company has declared bankruptcy.
  • Side B covers the company or organization for directors', officers', and employees' losses when it does indemnify them.
  • Side C coverage is also known as "entity coverage" because it financially protects the corporation in its own right.