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Directors & Officers Liability

Alabama Directors & Officers Liability insurance

Directors and Officers Liability (D&O) protects directors and officers of public, private and non-for-profit corporations against loss (damages and defense cost) arising out of their status or conduct as directors and officers. Common claims allege breach of duty, securities law violations, and unfair competition.

Why You Need Protection

Even if you don’t have outside shareholders, you are still at risk. On average, only 25 percent of directors and officers claims come from shareholders, with the remainder coming from other sources, such as vendors, customers, regulators and employees. As director or officer of any company, public or private, you can be held personally liable for your management actions. If your company is faced with a lawsuit, defending it could be financially debilitating. You’ve worked too hard and sacrificed so much to build a successful business. Don’t let the actions of others put your business at financial risk.


Director & Officers Liability Claims Examples

Stolen business opportunity – $2,500,000

The vice president of a manufacturer determined that a new product line presented tremendous sales potential. Instead of presenting his company with the opportunity, he shared it with his brother, who formed a new company to manufacture it. A shareholder sued the VP and the manufacturer, alleging that they wrongfully took advantage of an opportunity belonging to the corporation.


Violation of non-compete agreement – $850,000

A company recruited a top sales executive employed by a competing company. The competitor sued the company, alleging it had interfered with the competitor’s contractual relationship with its employee. Defense expenses were in excess of $250,000 and the competitor was awarded damages of $600,000.


Breach of fiduciary duty – $2,000,000

A plaintiff brought action for injunctive relief to remedy breaches of fiduciary duty, specifically alleging gross negligence and lack of a fair process against certain directors of the defendant. According to the claim, the defendant’s board awarded a regional operating license to one affiliate organization rather than the plaintiff. Defense costs alone exceeded $2 million.


Failure to supply business – $500,000

A retailer advised one of its suppliers to increase inventory because it expected business to increase significantly. The retailer’s business did grow, but it decided to move to another supplier. The original supplier sued the retailer, alleging that it relied on the retailer’s promise of more business and thus suffered damages when that business didn’t materialize.


Get the protection you need tomorrow, today.

To learn more about our Directors and Officers (D&O) liability insurance products, speak with one of our experienced professionals today.

Directors & Officers Liability

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122 W. Market Street
Athens, AL 35611
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