Commercial Insurance
Directors and Officers (D&O) Insurance
The people who lead your organization make decisions every day that carry personal liability. D&O insurance from WeInsureCali protects your directors, officers, and board members from lawsuits and regulatory actions that could threaten their personal assets.
What Is Covered
Coverage at a Glance
Side A: Personal Protection
Covers individual directors and officers when the organization cannot or will not indemnify them. Protects personal assets when the company is unable to pay for their defense.
Side B: Corporate Reimbursement
Reimburses the organization when it advances defense costs on behalf of directors and officers. Covers the company's indemnification obligations.
Side C: Entity Coverage
Covers the organization itself when it is named alongside its directors and officers in a securities claim or other covered lawsuit.
Employment Practices Liability
Many D&O policies include or offer Employment Practices Liability Insurance (EPLI), covering claims of wrongful termination, discrimination, harassment, and retaliation.
Regulatory Investigations
Covers legal costs when directors or officers are investigated by regulatory agencies, even before formal charges are filed.
Breach of Fiduciary Duty
Covers claims that directors or officers breached their duty of care or loyalty to the organization and its stakeholders.
California Context
Why This Matters in California
Directors and officers can be held personally liable for decisions made on behalf of the organization. Without D&O insurance, their personal assets, including homes, savings, and retirement accounts, are at risk.
California employment laws are among the most protective in the nation. Claims of wrongful termination, discrimination, and harassment are common and expensive to defend, even when the claims have no merit.
Nonprofit organizations in California are not exempt from lawsuits. Board members of nonprofits face the same liability exposure as corporate directors and need the same protection.
Shareholder lawsuits, investor disputes, and breach of fiduciary duty claims can generate legal costs in the hundreds of thousands of dollars. D&O insurance pays for defense and settlements.
Recruiting talented board members and executives is difficult without D&O coverage. Experienced professionals understand the liability risks and expect this protection as a condition of serving.
Important
If you serve on a nonprofit board in California, make sure the organization carries D&O insurance. Board members of nonprofits face the same personal liability as corporate directors and can be sued for management decisions.
Common Questions
Frequently Asked Questions
Related Coverage Options
Protect Your Organization's Leaders
Get a personalized quote in minutes. Our team is standing by to find you the best coverage at the best rate.