Directors & Officers Liability Insurance

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Directors & Officers Liability Insurance

We understand that one benefit of forming a corporation is to protect individuals from liability risks. Directors and Officers of a corporation are typically immune from liability, but some courts allow creditors to seize personal assets. Board members can be sued by an employee or third party who asserts a claim for non-bodily injury.

Employment practices like termination and discrimination are the largest exposure in these types of claims. Organizations with a small, friendly staff may feel that it’s unlikely they will experience employment claims resulting in a lawsuit. Consequently, they might not think it necessary to carry D&O insurance. However, when employees feel they have been wronged and are angry, they may file a claim even if it is baseless. At that point, the company will have to hire a lawyer.

As an insurance agent or broker, you can provide a more practical, cost-effective alternative to incurring substantial legal fees. You can help directors and officers obtain a legal defense policy from Prime Insurance Company. This coverage protects property, cash, securities, and other assets if an incident, claim, or lawsuit occurs.

In today’s litigious society, it’s important to educate insureds that a liability exposure is time-consuming and costly to defend. What if there is no corporate veil? What if the judgment exceeds the limits of standard coverage? We will customize a plan to cover these risks and exposures for your clients.

Coverages

Prime takes an all-in-one approach to D&O liability insurance. We can incorporate the coverages your clients require under one policy. Available options include:

  • Alleged Assault and Battery Liability: This insurance protects against claims of assault — an act that creates fear or the threat of imminent danger — and battery, which is the willful touching of another individual without their permission.
  • Alleged Sexual Abuse and Molestation Liability: This type of plan offers coverage during allegations of various forms of sexual misconduct, even if they turn out to be untrue.
  • Breach of Duty: This insurance covers lawsuits stemming from a director’s or officer’s breach of fiduciary duties that leads to significant financial losses or bankruptcies.
  • Customized Specialty Liability Coverage: This insurance provides tailored protection for specific D&O functions that could create liability exposure.
  • Deposition Coverage: This form of D&O liability coverage offers protection for statements made during a deposition.
  • Employment Practices Liability: This type of plan covers lawsuits filed by employees against directors and officers for various employment-related practices such as sexual harassment, discrimination, wrongful termination, deprivation of career opportunities, and mismanagement of benefit plans.
  • Misstatements, Neglect: This coverage pertains to various instances of inaccurate or false statements or negligent acts performed by the officer or director.
  • Spouse can be named as additional insured: Policyholders have the option to list their spouses as additional insureds to provide extended liability protection.
  • Wage & Hour: This type of plan covers indemnity and defense costs for pay-related incidents that may constitute a violation of the Fair Labor Standards Act.
  • Wrongful Acts: This coverage applies to actions, errors, or omissions that occur within the scope of the director’s or officer’s duties.

D&O Insurance for Difficult Risks

Many directors and officers face significant liability exposure, and some insurance providers won’t cover these risks. That’s where Prime can step in and offer coverage. We focus on providing protection for individuals or entities that have been declined coverage or had their policies canceled or nonrenewed. We also can take on applicants with an excessive claims history. We can even cover the gaps and exclusions in existing plans, providing true peace of mind.

Excellent Service Throughout the Policyholder Journey

Our commitment to service goes above and beyond what other D&O insurance providers offer. Our flexible underwriting enables us to deliver a range of custom solutions that meet each policyholder’s unique requirements. We provide top-notch claims service as well. Our claims hotline is available 24/7 to facilitate a fast filing process. We also handle the settlement process quickly, efficiently, and fairly. Our team of adjusters and attorneys works hard to combat frivolous or unfounded claims.

A Highly Rated Company With an Excellent Reputation

It’s crucial to choose a D&O insurance provider that will be there when times get tough. Prime is a financially stable company that has the resources to handle every claim. We’re proud to have earned an “A” (Excellent) rating from AM Best, a leading credit rating agency serving the insurance industry for nearly 125 years.

Benefits for Producers

As an insurance producer, you can benefit in many ways when you work with Prime for D&O liability coverage. We offer:

  • Access to expertise: Because Prime exclusively deals in high-risk insurance, we have more knowledge of this specialized market than other providers. The result will be better service for you and your policyholders.
  • Premium financing options: Liability coverage for directors and officers typically costs more than insurance in the standard market. We offer premium financing opportunities that can make these plans more budget-friendly for your clients, enabling you to write more business.
  • A partnership approach: We view everything we do as a team effort. We’ll work closely with you and the policyholder at every step, from applying for coverage to filing and handling claims.
  • No minimum production requirements: It’s easy to work with Prime. You can write as many or as few policies as you need to without worrying about meeting any minimums.

Personal connection: Unlike those insurance providers that take an automated approach, we make an effort to connect with producers and policyholders on a personal level. We’re available to answer your questions, address your concerns, and help you in any way we can.

What to Submit

We’ve streamlined our application process to save time and eliminate hassles when applying for D&O liability insurance. Applicants will need to follow a few steps and provide some key information:

  • Complete the General Application. Be sure to specify the limits requested.
  • A schedule of activities to be insured.
  • # of Employees
  • Claims History

Once we receive the application, we’ll schedule a convenient time to discuss the information by telephone. We’ll then conduct a final review and issue a quote for your approval.

If you have questions about D&O liability coverage, give us a call at 800-257-5590 or contact us online today.

Get a Quote!