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Directors & Officers Liability

At its most basic, D&O insurance protects directors and officers from liability arising from actions connected to their corporate positions.


Directors and Officers liability is liability insurance payable to the directors and officers of a company, to cover damages or defense costs in the event they suffer such losses as a result of a lawsuit for alleged wrongful acts while acting in their capacity as directors and officers for the organization. It has become closely associated with broader management liability insurance, which covers liabilities of the corporation as well as the personal liabilities for the directors and officers of the corporation.


Typical sources of claims include shareholders, customers, stakeholders, and competitors (for anti-trust or unfair trade practice allegations). Directors and officers of a corporation can be liable if they damage the corporation by breaching their duties and contracts to the corporation, mix personal and business assets, or fail to disclose conflicts of interest. In the United States, however, corporations are often required by law, particularly state law, to indemnify directors and officers in order to encourage people to take the positions.  However, the policies have exclusions and must be read carefully.


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Greater Portland Metro Area Office

8800 SE Sunnyside Rd. Ste 202N
Clackamas, OR 97015
Main office: 503-762-2470
Fax: 503-715-0437

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Commercial Insurance Northwest has always provided us with great service and competitive rates. We recommend them highly.

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