What Insurance Covers Board Members?
Directors and officers (D&O) insurance covers board members sued over decisions they make in their board role, as long as the policy counts that role as insured.
Directors and officers (D&O) insurance covers your board members when they're personally sued over how they managed the company. It pays defense costs and covered settlements, provided the policy's definition of an insured person includes their board seat.
Service on another organization's board or committee is often treated differently. If a director also sits on an outside board, ask whether the policy extends to that seat.
Before you buy, check who counts as an insured, whether the company itself is covered, which exclusions apply, whether individuals and the company share one limit, and the claims-made reporting deadline.
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