A component of commercial insurance that is often overlooked is Directors and Officers (D&O) liability insurance. While it may seem unnecessary, it’s extremely beneficial when needed. Managing an organization involves a lot of work, and having directors and officers who fail to meet requirements or face false claims will need coverage. If you’re considering including this in your commercial insurance policy in Houston, TX, our City Centre Insurance Agency LLC agents can assist.
Understanding D&O Liability Coverage
D&O liability covers claims such as mismanagement, breach of fiduciary duty, misrepresentation, and employment practices. These policies also include regulatory violations. Incorporating these into an insurance plan is important, as the policy can help cover legal defense costs, settlements, and regulatory investigation expenses.
Exclusions From D&O Insurance
D&O insurance often has an exclusion list that you should be aware of. They often will not cover any illegal acts, such as criminal activity or fraud. They also will not cover gains obtained illegally. Any wrongful acts will also not be covered under D&O insurance policies. Understanding your policy’s limitations is essential, as you don’t want to find yourself in a situation where you are expecting coverage and don’t have it.
How We Can Assist
D&O insurance coverage is complex and often varies depending on the provider. You should discuss terms with a qualified agent to ensure that you’re getting what you need. At City Centre Insurance Agency LLC, we’re here to help. If you live in the Houston, TX, area, we’re ready to assist you and guide you through your different policy options.