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D&O Insurance: Coverage for All Business Types

insurance d&o

D&O Insurance: Coverage for All Business Types

Many businesses think that they could go without insurance D&O coverage. There’s a belief that only public companies need to worry about D&O claims. Unfortunately, that’s not the case. Non-profit companies and private companies also face D&O litigation risks.

When Do You Need to Worry?

If your business has an advisory committee or corporate board, then you need to invest in D&O insurance. The revenue needed to fight a claim if your directors and officers are sued over company affairs could be in the tens of millions of dollars. Most companies don’t have that lying around. When you think of this as a large company problem, keep in mind that smaller businesses have fewer assets and need more protection.

What Are Some Risk Claims?

There are quite a few claims that result in D&O lawsuits. Here are some of those claims:

Failure to comply with workplace rules

Intellectual property theft

Fiduciary duty breach


The truth is that it is very easy for a company to end up with a lawsuit filed against them, particularly in the management of the company.

No matter the size of your business or whether you’re public or private, if you have an advisory committee, you need insurance D&O coverage. Without it, you may not have the revenue to fight a claim.