Do Small Businesses Need D&O Insurance?

D&O addresses management allegations, while general liability covers many injury and property claims. Identify who can challenge your decisions.

For a small business, examine whether “director” or “officer” matches the actual ownership and management structure; an LLC manager or an employee may need to fit a specific definition. Side A and B can respond through individual or reimbursement grants, while Side C is relevant only if purchased. A policy may exclude claims by one insured against another and restrict prior acts or intentional conduct. Compare the limits to the number of insureds and any shared limit with EPLI or fiduciary coverage. Check the named entities, retention, and defense-cost wording before treating the policy as a general business-liability substitute.