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Directors and Officers Insurance 

Got Insurance Requirements? - Do you have the insurance coverage required by your Board of Directors? Do you need coverage to attract qualified directors and to retain your important leaders? We are your Business Insurance specialists. Let us review your insurance requirements and guide you to the insurance coverage you need.

Why we're different from the other online business insurance sites:

  • Quotes Quick - We do our best to expedite your quote.
  • Service After the Sale - Local friendly service for over 30 years.
  • Knowledgeable Help - We help you understand your insurance choices.
  • Broad Range - We offer a wide range of business insurance programs.
  • Walk-in Service Available - Visit us at our South Austin office - Map, Directions and Contact Information
          

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Board of DirectorsWhat is Directors and Officers Insurance?

Directors and Officers can be individually sued by stockholders, competitors, employees and other stakeholders for mistakes made in overseeing a public company or non-profit organization. Claims can occur if oversight duties are breached, judgment errors occur or money is misappropriated by directors / officers in their official capacity. The insurance protects the individual director or officer from such civil claims caused by their errors or omissions (but not criminal acts) providing for legal defense costs and shielding their personal assets up to the policy limits. A company or non-profit organization buys this protection for their leaders to attract motivated and qualified people for these roles. A Directors and Officers insurance contract is normally "Claims Made" policy form (see explanation below).

A Directors and Officers plan can also include options for Employee Practice Liability (errors in handling employee situations such as discrimination in hiring or promotion) and Fiduciary Liability. These are additional substantial areas of lawsuit risk that insurance protection can be useful.

Claims Made Form

A "Claims Made" Liability form will respond to a claim event that occurs during the time the policy is force or its retroactive date and also reported during the allowed reporting period. A normal reporting period is the policy term plus sixty days. A "Claims Made" Liability policy can lead to an additional vendor requirement of "Tail Coverage" (extended reporting period for claims) which can be an additional large expense.

Important Terms for a Claims Made Policy

Retroactive Date - When you buy a renewal of your Professional Liability Insurance contract, you want to include your prior policy period in your new plan. This so-called "Retroactive Date" is the start of your continuous coverage. If a Professional Liability claim erupts that happen in this prior contract period (i.e., after the "Retroactive Date") but is reported during the current policy term, the current Product Liability policy will respond to it. Insurance companies will rate for this added retroactive exposure.

Standard Reporting Period - The time during which the insurance company will respond to a reported claim. This is normally the policy term plus sixty days beyond the expiration of the policy.

Tail Coverage (Extended Reporting Period) - This an extended reporting time period that can be purchased when a policy is not renewed in which a claim during the policy term can be reported and the insurance respond. Tail Coverage is typically sold in year increments and is often quite expensive.