Directors & Officers Insurance

D&O INSURANCE

Safeguard Your Leadership Team

Directors and Officers (D&O) Insurance provides essential protection for the individuals who lead your organization. When directors, officers, or board members make decisions on behalf of your company, they can be held personally liable for the outcomes.

D&O claims can arise from shareholders, employees, customers, competitors, regulators, or other third parties. Without proper coverage, your leadership team’s personal assets — including homes, savings, and investments — could be at risk.

Whether you’re a publicly traded corporation, private company, or nonprofit organization, D&O insurance is a critical component of your risk management strategy. Densmore Insurance Strategies, Inc. can help you find the right coverage.

Understanding D&O Coverage

D&O insurance typically includes three distinct coverage parts, often referred to as Side A, Side B, and Side C.

Side A Coverage

Protects individual directors and officers when the company cannot indemnify them — such as in bankruptcy situations or when indemnification is legally prohibited. This coverage goes directly to the individual.

Side B Coverage

Reimburses the company when it indemnifies its directors and officers for covered claims. This protects the organization's balance sheet when it fulfills its indemnification obligations.

Side C Coverage

Also known as "entity coverage," this protects the company itself when it's named alongside directors and officers in securities claims. Essential for publicly traded companies.

What D&O Insurance Covers

Comprehensive protection against the most common claims faced by corporate leadership.

Shareholder Lawsuits

Claims from shareholders alleging mismanagement, breach of fiduciary duty, or decisions that negatively impacted stock value or company performance.

Regulatory Investigations

Defense costs and penalties arising from investigations by the SEC, IRS, DOJ, or other regulatory agencies into company practices or financial reporting.

Employment Claims

Allegations of wrongful termination, discrimination, or harassment brought against individual directors or officers in their management capacity.

Breach of Fiduciary Duty

Claims that directors or officers failed to act in the best interests of the company, its shareholders, or other stakeholders.

Misrepresentation

Allegations of misleading statements in financial reports, prospectuses, press releases, or other public communications.

Mergers & Acquisitions

Claims arising from M&A transactions, including allegations of inadequate due diligence, unfair pricing, or conflicts of interest.

Creditor Claims

Lawsuits from creditors alleging that directors or officers made decisions that prioritized other interests over creditor repayment.

Competitor Actions

Claims from competitors alleging unfair business practices, antitrust violations, or intellectual property infringement directed by leadership.

Did You Know?

The average D&O claim costs over $500,000 to defend and settle. For publicly traded companies, securities class action settlements average over $40 million. Even private companies and nonprofits face significant exposure — D&O insurance is essential protection for any organization with a board or leadership team.

The Risk Is Real

D&O claims are more common than many business owners realize — and the financial consequences can be devastating.

of private companies face a D&O claim within 10 years

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average cost to defend and settle a D&O claim

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of D&O claims come from employees, not shareholders

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average time to resolve a D&O lawsuit

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Who Needs D&O Insurance?

Any organization with a board of directors, officers, or management team should consider D&O coverage.

Publicly Traded Companies

Face the highest exposure to shareholder lawsuits and SEC investigations.

Private Companies

Vulnerable to claims from investors, creditors, employees, and competitors.

Nonprofit Organizations

Board members face personal liability for organizational decisions.

Startups & Emerging Companies

Essential for attracting quality board members and investors.

Financial Institutions

Subject to heightened regulatory scrutiny and fiduciary obligations.

Healthcare Organizations

Face unique compliance requirements and patient‑related claims.

Educational Institutions

Board members oversee significant assets and face diverse stakeholder claims.

HOAs & Condo Associations

Board members can be personally sued by unit owners.

Investment Funds

Fund managers face claims from investors regarding performance and decisions.

Why Choose Densmore Insurance?

At Densmore Insurance Strategies, Inc., we understand the complex liability landscape facing corporate leadership and are committed to helping Iowa organizations stay protected. Here’s why businesses trust us with their D&O coverage.

Independent Agency

We work with multiple top‑rated carriers to find the best D&O coverage and pricing for your organization.

lowa Expertise

Lowa Expertise Deep understanding of Iowa business regulations and the unique risks facing local organizations.

Policy Analysis

We carefully review policy terms, exclusions, and conditions to ensure you have the coverage you need.

Claims Support

Expert guidance through the claims process, advocating for your interests with the insurance carrier.

Frequently Asked Questions

Get answers to common questions about Directors & Officers insurance.

What is the difference between D&O insurance and general liability insurance?

General liability insurance covers bodily injury and property damage claims against your business. D&O insurance specifically protects individual directors and officers from personal liability arising from their management decisions. These are separate coverages that address different types of risk.

Do small businesses need D&O insurance?

Yes, small businesses can benefit from D&O coverage. Even without a formal board, business owners and managers can face personal liability for decisions that affect employees, creditors, or investors. D&O insurance protects personal assets from business-related claims.

Does D&O insurance cover criminal acts?

D&O policies typically exclude coverage for intentional criminal acts, fraud, and illegal personal profit. However, most policies will cover defense costs until a final adjudication of wrongdoing. Some policies offer broader coverage for regulatory investigations.

What is the difference between claims-made and occurrence policies?

D&O insurance is almost always written on a claims-made basis, meaning it covers claims made during the policy period regardless of when the alleged wrongful act occurred. This differs from occurrence policies that cover incidents during the policy period regardless of when claims are filed.

How much D&O coverage do I need?

Coverage limits depend on your organization’s size, industry, risk profile, and assets. Publicly traded companies typically need higher limits due to securities litigation exposure. We’ll help you assess your specific risks and recommend appropriate coverage levels.

What is tail coverage and when do I need it?

Tail coverage (or extended reporting period) allows you to report claims after your policy ends for wrongful acts that occurred during the policy period. This is important when changing insurers, selling your business, or when directors retire from the board.

Are former directors and officers covered?

Most D&O policies cover former directors and officers for claims arising from their service during the policy period. However, coverage terms vary, so it’s important to review your policy’s definition of “insured persons” and any applicable time limitations.

How does D&O insurance work with indemnification?

D&O insurance works alongside your company’s indemnification provisions. Side A coverage protects individuals when the company cannot indemnify them, while Side B reimburses the company for indemnification payments. This layered approach ensures comprehensive protection.

PROTECT YOUR LEADERSHIP TEAM TODAY!

Densmore Insurance Strategies, Inc. provides comprehensive Directors & Officers insurance to organizations in Bondurant and the surrounding Iowa communities. We understand that every organization faces unique governance risks, which is why we offer customized coverage solutions.

Our team of experienced professionals will evaluate your current exposure and recommend the right level of D&O protection for your specific needs. We also offer competitive rates by shopping multiple carriers on your behalf.

Contact us today at (515) 967-3390 to learn more about our D&O insurance options. We look forward to helping you safeguard your leadership!

Phone

(515) 967-3390

Email

info@densmoreis.com

Address

85 Paine Street SE, Suite G, Bondurant, Iowa 50035