About Directors and Officers Liability Insurance in Minnesota
What is Directors & Officers Liability Insurance?
Directors and Officers (D&O) Liability Insurance is a type of commercial insurance that protects the company’s board in the event that a lawsuit is filed against them. All directors and officers that serve on the board, along with their spouses, are covered and their assets are protected by lawsuits filed by employees, competitors, customers, vendors, investors or any other interested parties. This insurance ensures that parties cannot go after the personal assets of a board member because of their actions within the company.
Why Board Members are Sued
Common complaints made against officers and directors can include:
- The mismanagement of company funds
- Unlawful decisions
- Acts and employment-related issues
- Fraud
- Intellectual property theft
Many other allegations regarding the mismanagement of a company can also be included in these types of lawsuits. In general, directors and officers liability insurance will not protect the company or board members against illegal actions or illegal profiteering.
Who and What Directors and Officers Liability Insurance Covers
Along with board members and spouses, directors and officers liability insurance usually protects the company and its assets. It can cover the legal expenses along with settlements and other costs associated with a lawsuit.
The businesses that tend to carry directors and officers liability insurance include:
- Nonprofits, not-for-profit companies and charities
- Financial institutions
- Public and private companies
- Educational institutions
Most Minnesota businesses with a board, regardless of size and revenue, will want to carry some type of directors and officers liability insurance to protect their board members from being personally sued because of their actions within the company or organization.
Obtain Minnesota Directors and Officers Liability Insurance for Your Business
Looking for directors and officers liability insurance in Minnesota? Contact The Patrick J. Thomas Agency for a quote on your plan. We proudly serve businesses in across the state of Minnesota and have been drafting customized coverage for decades.