We offer Directors and Officers Insurance coverage in Massachusetts, Maine, New Hampshire, Rhode Island, Maine, New York and Florida.
Please ask one of our agents how we can provide you with insurance across multiple states.
What is directors and officers insurance?
The responsibilities that come with leading organizations also present risks, as business and nonprofit leaders could be held personally responsible for bad decisions that they make. While the consequences for such decisions are most often professional, they can also become financial in serious situations. To help protect against potential financial costs resulting from their decisions, business leaders in Massachusetts can get directors and officers insurance.,
Directors and officers insurance is specialized liability coverage for those who lead businesses and nonprofits. Policies may protect against a variety of consequences that could follow bad decisions.
What leaders in Massachusetts does D&O insurance make sense for?
Most Massachusetts professionals with senior positions could benefit from having D&O insurance. A policy might be helpful to those leading small businesses, large corporations or nonprofits.
As a few examples, the following are positions often held by professionals who get this coverage:
- Chief executives (CEOs, CFOs, CMOs, COOs)
- Presidents, vice presidents, directors
- Chairpersons, board members, advisory partners
- Trustees, treasurers
Quotes Available in MA, RI, CT, NH, ME, NY and FL
What types of decisions are covered by D&O insurance?
D&O coverage can apply to a range of decisions or actions a senior officer might take. Depending on the particulars of a policy, one could cover situations resulting from:
While many decisions and actions are covered, intentional misconduct and intentional criminal activity normally aren’t.
Are breaches of fiduciary responsibilities covered by directors and officers policies?
Breaches of fiduciary responsibilities may not be covered by all directors and officers policies, but some policies certainly may cover such breaches. An insurance agent specializing in D&O can help professionals who have fiduciary responsibilities find a policy that will cover them properly.
What are the coverage aspects of D&O policies (Sides A, B, and C)?
There are three common aspects that might be found in D&O policies. These are commonly called “sides:”
- Side A: Mainly for leaders themselves. Generally covers scenarios where organizational funds are insufficient to meet the legal fees and settlements that leaders have to pay. For instance, this may be needed if an organization goes bankrupt or becomes insolvent.
- Side B: Mainly for organizations. Generally covers scenarios where an organization faces legal fees and settlements because of a senior leader’s decisions or actions.
- Side C: Mainly for securities-related protection. This is predominantly used by publicly traded companies, and less often for private businesses’ entity coverage.
What expenses do D&O policies cover when there’s a claim?
Should a professional have a covered claim, D&O policies usually cover attorney fees, court costs, settlements or judgments resulting from the covered decision or action. As always, coverage is subject to a specific policy’s terms, limits and deductibles.
Do both businesses involved in a merger need D&O insurance?
Making sure business leaders are properly covered when their companies are involved in mergers is complex. This is particularly complex not just because of all the changes that are made in a merger, but also because this is a monumental action that’s based on leaders’ decisions.
Because D&O insurance and mergers isn’t straightforward, business leaders who are involved in mergers may want to contact an insurance agent who specializes in these types of policies. A specialized agent will be able to help leaders ensure D&O coverage is in place throughout the full process of merging.
How much does purchasing a D&O policy cost?
The premiums charged for D&O policies vary quite a bit. Factors like the following can all have an impact on cost:
- Leader’s position and responsibility
- Organization’s size and industry
- Organization’s financial position
- Any recent insurance claims
An independent insurance agent can help leaders and businesses find out how much they’d pay for a D&O policy.
Where can business leaders in Massachusetts find directors and officers insurance?
For help finding directors and officers insurance, reach out to the independent insurance agents at Coonan Insurance Agency. Our Massachusetts agents have helped many businesses, nonprofits and leaders find the insurance coverages they need. We’re ready to help you find the D&O coverage you need.
