Executive Management (D&O)
The policy for claims against the people who run the business, in that capacity. Investors, partners, lenders and regulators bring these, and personal assets are what is at risk.
The claim that actually happens
A minority partner alleges the majority acted against the entity
Nothing in a professional liability policy responds to a dispute about how the business was run. Directors and officers cover exists precisely because those claims target individuals personally rather than the entity.
What it responds to
- Claims against directors, officers and managers
- Breach of fiduciary duty allegations
- Investor and shareholder disputes
- Regulatory investigation defense
- Personal asset protection for the individuals named
What people assume it covers, and it does not
- Bodily injury and property damage
- Claims by patients about treatment
- Fraud or deliberate wrongdoing, once established
Who usually does not have this
Practices with outside investors, more than one owner, or a franchise agreement. It becomes essential the moment somebody who is not an operator holds equity.
Cover360