Directors & Officers Insurance in Illinois & Beyond
Protect the People Who Lead Your Organization
Directors & Officers (D&O) insurance protects the personal assets of business owners, board members, executives, and nonprofit leaders when they are sued for decisions made in their leadership roles. Claims can arise from allegations of mismanagement, breach of fiduciary duty, misuse of funds, failure to follow bylaws, discrimination, or other managerial actions that result in financial harm. Even small businesses and nonprofits face these risks — and without D&O protection, leaders could be held personally liable. A properly structured D&O policy allows your leadership team to make confident decisions without fear of personal financial ruin.
What’s Included in D&O Liability Coverage
Management Liability
Protects leaders against claims alleging mismanagement, negligence, or breach of fiduciary duty. This includes decisions that allegedly harmed employees, clients, donors, investors, or competitors.
Legal Defense Costs
Covers attorney fees, court costs, and related legal expenses — even when claims have no merit.
Settlements & Judgments
Provides financial protection if the organization or its leaders are required to pay damages resulting from a covered claim.
Coverage for Both Businesses & Nonprofits
Policies can be tailored for private companies, startups, established organizations, and nonprofit boards. Nonprofit boards — often made up of volunteers — especially rely on D&O to attract and retain leadership.
Protection for Past, Present & Future Directors
Most policies include coverage for individuals who previously served, are currently serving, or will serve on the board.
Optional Management Liability Enhancements
We can structure combined policies that include Employment Practices Liability (EPL), Fiduciary Liability, Crime, and other executive risk coverages when broader protection is needed.
What to Expect From Our Team
We begin by learning about your organization’s structure, mission, and unique exposures. Then we match you with insurers who specialize in D&O protection for both private companies and nonprofits. As an independent agency, we compare carriers to find policies that fit your budget while providing strong financial backing and responsive claims support. We explain policy features such as claims-made structure, defense costs, and limit options so your leadership team understands exactly how they’re protected.
Understanding Directors & Officers Liability
Below is a helpful breakdown of how D&O insurance protects organizational leadership.
| Coverage Type | What It Covers | Why It Matters |
|---|---|---|
| Mismanagement | Claims alleging poor decision-making | Leaders can be personally sued without coverage |
| Breach of Duty | Allegations of failing fiduciary responsibilities | Common in both businesses & nonprofits |
| Misuse of Funds | Accusations of improper financial oversight | Critical protection for volunteer boards |
| Discrimination/Harassment (Optional via EPL) | Employee-related allegations | Often excluded unless EPL is included |
| Investor/Donor Claims | Financial loss or dissatisfaction | Lawsuits can arise even without wrongdoing |
Need help determining if your organization needs D&O? We’re here to guide you.
Common Questions About Directors & Officers Insurance
What does D&O insurance cover for a small business or nonprofit?
It covers legal defense and settlements when leaders are sued over management decisions — such as mismanagement, financial errors, or failing to meet fiduciary duties.
Do we need D&O liability for our organization?
If you have a board, officers, or decision-making leadership team, you should strongly consider it. Even nonprofits and small businesses face claims from donors, employees, vendors, or competitors.
Is D&O only for big corporations?
Not at all. Most small businesses and nonprofits purchase D&O because claims can arise from routine decisions.
Will my general liability policy cover these claims?
No. General liability covers bodily injury and property damage — not management decisions or financial losses.
Can D&O be bundled with other coverages?
Yes. Many organizations choose management liability packages that include Employment Practices Liability (EPL), fiduciary liability, and other protections.
Protect Your Leadership Team With Confidence
Your leaders make tough decisions every day. D&O coverage shields them from personal liability and strengthens your organization's stability. Let us help you structure a policy that fits your business or nonprofit.
