D&O (Directors & Officers) Insurance Explained: Could Your Board Be Personally Sued?

Directors & Officers Insurance, also called D&O insurance, is one of those coverages many organizations don’t think about until there is a problem. A lot of business owners, nonprofit leaders, chamber board members, condo boards, HOA boards, clubs, and associations assume that having General Liability insurance means their board or leadership team is protected. But General Liability and D&O insurance usually handle very different types of claims. General Liability often deals with things like bodily injury and property damage. D&O insurance is different. It may help protect directors, officers, board members, and sometimes the organization itself from certain claims tied to leadership decisions, mismanagement allegations, breach of duty, financial harm, bylaws disputes, or decisions someone believes caused damage. In this video, we’ll break down: What Directors & Officers Insurance is Why General Liability may not be enough Why volunteer board members can still be named in lawsuits Why D&O insurance may matter for nonprofits, chambers, condo associations, HOA boards, and private companies What Side A, Side B, Side C, and Side D mean Why cheap D&O policies can be misleading Why claims-made timing matters The biggest mistake small organizations make with D&O coverage The big takeaway is simple: don’t just ask, “Do we have D&O insurance?” Ask: Who does it actually protect? What does it exclude? Are volunteers or committee members covered? Is the organization covered? Are defense costs inside or outside the limit? Are the individual board members and the organization sharing the same limit? What happens if the policy is canceled, switched, or allowed to lapse? Because with D&O insurance, the details matter. Thanks for watching Insurance Dork — where we make sense of insurance without putting you to sleep. Customers First Insurance Group Michigan Independent Insurance Agency Phone: 586-221-6870 Website: https://customersfirstig.com