What Does A Directors & Officers Policy Cover?
• The policy will pay loss for Claims against the directors and officers while acting in their capacity as Directors or Officers. • Loss includes Defense Costs and Damages, like settlements and judgments. • Claims are generally for economic damages, but may include some non-monetary damages. • Covers the indemnification obligation of the Organization to the Individuals. How Prevalent are D&O Lawsuits against Private Companies? In a recent Chubb Insurance survey, 37% of executives from privately -held organizations polled believed that they would be sued by customers in the coming few years. Roughly 30% felt vendors would sue while 21% feared suits from shareholders. Statistics show that the most common suit against D&Os are employment-related claims. Coverage in these employment-related situations will depend on the coverage provided by the D&O policy.
