D&O insurance specifically protects directors and officers from personal liability related to their management decisions, while general liability insurance covers the organization against claims of bodily injury or property damage.

Typically, D&O insurance covers directors, officers, and sometimes key employees of the organization. It may also extend to the organization itself in certain circumstances.

Yes, common exclusions include fraud, criminal acts, and personal gain. It’s essential to read the policy carefully to understand what is not covered.

When a claim is made, the insured must notify their insurer promptly. The insurer will then investigate the claim and determine coverage before providing legal defense or settlement as needed.

Yes, many D&O policies include “prior acts” coverage, which protects against claims arising from decisions made before the policy was in effect, as long as they were disclosed during application.

While not legally required, having D&O insurance is highly recommended for companies to protect their leaders from personal financial risk and to attract qualified individuals to leadership positions.

Having D&O insurance can enhance corporate governance by encouraging directors and officers to make decisions without fear of personal liability, knowing they have protection in place.

Consider factors such as the insurer’s reputation, claims handling process, coverage options, limits of liability, exclusions, and premium costs when selecting a D&O insurance provider.