What is Directors and Officers Insurance?
People who lead organizations have substantial responsibilities, and those responsibilities sometimes come with increased risks. Specifically, leaders may be held financially responsible for errors they make that negatively impact the organization they’re in charge of. Directors and officers insurance policies can help leaders who oversee Massachusetts-based organizations from some of the liability risks that accompany their responsibilities.
Directors and officers insurance policies are specialized professional liability policies that uniquely meet the risk mitigation needs of people who are in leadership roles. As is the case with other forms of liability insurance, these policies will typically cover legal defense fees and settlements if a leader faces a covered claim.
Who in Massachusetts is D&O Insurance Appropriate For?
Most anyone who has a significant leadership position within an organization in Massachusetts might benefit from the protections that D&O insurance affords. This includes both leaders of for-profit businesses and not-for-profit organizations, leaders of both types of organizations may be held responsible if they make a major error.
Some specific examples of leadership positions that people might want D&O insurance coverage for include:
- Presidents and vice presidents
- C-level executives
- Chairpersons and board members
- Directors and other officers
Anyone who’s unsure whether their position warrants getting this insurance can speak with a specialized agent for further guidance. An agent who’s familiar with D&O policies will be able to help both leaders and organizations think through the risks that a particular leader is exposed to, and determine whether a D&O policy makes sense for them.