Management Liability Insurance

Directors and officers (D&O) insurance covers claims against company leaders for alleged wrongful acts in their management decisions including shareholder suits, investor disputes, and regulatory investigations. It protects both the individuals and, in many cases, the company itself.

Companies with boards, outside investors, or significant employee headcount. Investors, lenders, and board members often require D&O or EPL as a condition of their involvement. Growing mid-size companies commonly add management liability as their governance and employment exposure increases.

Directors and officers (D&O) insurance covers claims about management decisions and governance such as shareholder suits or regulatory investigations. Employment practices liability (EPL) covers workplace claims like discrimination, harassment, retaliation, and wrongful termination. Management liability policies often combine both coverages.

If your business has outside investors, a board of directors, or employees, management liability exposure exists. Even smaller companies with growth plans or outside capital should evaluate D&O and EPL coverage claims in these areas can be expensive to defend regardless of outcome.

Often, yes. Nonprofit board members can be personally named in claims over governance decisions, employment matters, or use of funds, and D&O coverage helps protect them. Many qualified board candidates ask about D&O coverage before agreeing to serve.

No. Deliberate fraud, criminal acts, and intentional misconduct are excluded from D&O policies. Coverage is designed for good-faith management decisions that are later challenged, including claims that turn out to be unfounded.