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What is Management Liability (D&O) Insurance and Why Have it?
Management liability (D&O) at its core is financial protection for a company or organization’s directors, officers, managing members or equivalent positions while they are working on the company or organization’s behalf. The coverage intends to pay for defense and potential indemnity of legal action taken against these individuals for allegedly breaching their fiduciary duties owed to their stakeholders, donors, etc.

Management liability claims affect all companies and organizations, large and small, public, private or nonprofit. The individuals that sit on the board all share a similar exposure. Within all of these exposures the company or organization’s directors and officers personal assets could be up for grabs in a settlement situation. Is your company or organization financially stable enough to withstand a class action lawsuit from stakeholders for a public misstatement? In terms of private companies and non-profits, are you prepared for the costs to defend yourself if allegations of unfair business practices arise? The costs of defense and potential settlements can reach sky-high amounts for these types of allegations that can put companies or organizations out of business or operation. Are you properly prepared?

Key Coverages Include:
• Insuring Agreements A, B, C and D available
• Duty to defend or duty to pay policies are available
• Outside Position coverage included for 501 ©3
• Additional Side A offered on most forms
• Lifetime reporting for former directors and officers available
• Coverage Territory is Worldwide
• Most policies are fully non-rescindable
• Negotiable settlement clauses
• Policies can package D&O, EPLI, Fiduciary and CRIME, or write them all standalone.
• Defense outside the limit available

Sample Claims:
By Creditors: Company X filed for Bankruptcy due to poor market conditions. As a result, the company’s creditors filed a class action lawsuit alleging misappropriation of funds, breach of fiduciary duty and negligence against the Directors and Officers. A trail found that the company did in fact not handle their finances properly and had misled their creditors. Defense and Settlement: over $1,000,000.

By Vendors: Claimant filed suit against Company A and its President individually for Breach of Contract. They alleged the President promised them an exclusive contract, but after nine months of the one year contract, the President hired a different vendor and terminated the contract. The claimant alleged they lost out on three months of business resulting in $100,000 in lost income. Defense: $180,000.

By Competitors: Company A filed suit against Company B for hiring one of their key employees. Company A alleged that Company B hired the employee and in the process stole trade secrets and customer information. Defense and Settlement: $75,000

Top Markets:

The Apogee Advantage: We write management liability with 30 plus A – A++, A.M. best rated admitted and non-admitted insurers in all 50 states. We target all classes of business for public, private companies and non-profit organizations.

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