To protect your assets in the case of a lawsuit, you may want to decide to take out directors and officers liability insurance coverage. The insurance is paid out to the directors or officers of a company to cover damages in case they are sued. However, directors and officers liability insurance will not protect against deliberately wrongful acts.

Liability insurance for corporate officers and directors now comes standard with most corporate policies. Directors and officers liability insurance for corporations have risen in need due to the large amount of lawsuits brought against firms when their stock significantly drops.

1. Find directors and officers liability insurance information. You’ll want to find out what the insurance covers and whether your firm can benefit from this type of protection.

2. Locate companies that offer directors and officers liability insurance services. Speak to numerous directors and officers liability insurance brokers to find coverage options.

3. Contact directors and officers liability insurance agencies. Receive quotes and discuss how to make directors and officers liability insurance cost efficient.

Action Steps
The best contacts and resources to help you get it done

Get info on directors & officers liability insurance

Before taking out directors and officers liability insurance coverage, you'll want to find out the inclusions and exclusions of this type of plan. You'll also likely determine it helpful to look at stats to get an idea of what type of lawsuits you and your company are vulnerable against.

I recommend: You should look at the legal side of directors and officers liability insurance on the site FindLaw. This site provides helpful statistics as well as the history of the insurance plan. To get an explanation of coverage from an insurance agent standpoint, go to InsurePro.

Find directors and officers insurance agencies

Once you determine the need for officers and directors liability insurance, then you can move forward and contact brokerage firms and agencies to discussing adding on this plan to your new or existing coverage.

I recommend: Choose your company type on Tennant Risk Service to find out available directors and officers liability insurance services in your area. Additional insurance services for directors and officers can be located at Insurance4DirectorsandOfficers.com.

Receive quotes on directors and officers liability insurance plans

You'll probably want to conduct some pricing research on your own prior to having your broker or agent start the process of enrollment. Find quotes from local and national insurance companies to ensure that you're getting the best price on liability insurance for corporate officers and directors.

I recommend: Contact Moody Insurance Worldwide to request a quote on their liability insurance for directors and officers. Read through their executive plans to choose the right level of coverage for your firm. If you have a non-profit organization, you can receive a coverage quote from Victor O. Schinnerer & Company.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  According to a survey conducted by Wyatt, approximately 31% of all companies will have a claim submitted against them. Due to this high figure, directors and officers liability insurance agents will typically recommend this coverage.