Colorado Directors & Officers Liability
Directors and officers liability insurance helps to protect those that your business relies on—the ones that run it. While general liability coverage offers protection against claims of wrongful action or negligence that result in bodily harm, there is much that it doesn’t cover, and while many businesses in the Denver area have general liability coverage, adding Directors and Officers coverage can greatly benefit your organization.
How it can helpWhether it is a director, a trustee, or an employee, companies rely on people to act in the company’s best interests. However, we are all human and even the best of us can make mistakes. Directors and officers liability insurance protects executives against claims of slander, libel, misrepresentation, and defamation of character, amongst other things. It can cover the cost if a lawsuit is pressed, claiming sexual or workplace harassment, discrimination or wrongful discharge. Officers and directors have to rely on their best judgment when making decisions that affect the company. Errors can happen and people can be misinterpreted, and directors and officers coverage protects your executives from potential lawsuits resulting from key decisions or management practices—lawsuits that may target their personal assets. Having insurance like this in place often helps businesses attract top talent that are reassured that the company has their back, talent that otherwise might go somewhere other than Denver.
The SpecificsThere are many things that directors and officers liability insurance policies will cover, and some that it will not. Here are some of the more common in both categories: Covered
- Prior acts (if the insurance company is willing)
- Wrongful acts-an act, error, omission, breach of duty, or misstatement, which may cause economic injury to a third party.
- Non-disclosure of conflict of interest
- Cases of wrongful dismissal, sexual harassment claims, discrimination, workplace harassment
- Defend against claims of slander, libel, misrepresentation, non-monetary damages, innocent errors in judgment
- Provides duty to defend coverage
- Fraud, personal profiting, accounting profiting, other illegal compensation exclusions
- Illegal acts that the person committed knowledgably and willingly, including infringement of intellectual property rights
- Bodily injury, pollution, property damage, etc.
Who can be covered under this?
- Directors, trustees, committee members, volunteers, and officers