LONERGAN & THOMAS

Directors and Officers Insurance in Vermont

Directors and Officers Insurance Vermont

Learn About Directors and Officers Insurance in Vermont & More

What is directors and officers insurance? 

Leading organizations, including both businesses and nonprofit, presents certain risks. A senior leader might be held professionally responsible for an error they make, and they could even be sued for liability if the error is serious enough. To help protect against this risk, leaders of Vermont organizations may want directors and officers insurance.

Directors and officers insurance provides liability coverage that’s tailored to meet business and nonprofit leaders’ needs. Policies may provide both leaders and organizations with protection.

Who in Vermont typically gets D&O insurance?

Usually the people who get D&O insurance hold senior leadership positions. Most senior leaders of businesses and nonprofits in Vermont could benefit from having coverage.

For instance, this coverage is frequently used to help protect:

  • Upper-level executives
  • Presidents, vice presidents and directors
  • Chairpersons and board members
  • Trustees, treasurers and financial officers
  • Others in leadership positions

If there’s uncertainty as to whether coverage should be purchased for a particular position, leaders and organizations can consult with an insurance agent who specializes in D&O insurance.

What situations does D&O cover?

D&O insurance addresses multiple situations where a senior leader may be personally liable due to a decision or action that negatively impacted their organization. Some situations that a policy might cover are:

  • Misrepresentations
  • Misleading statements
  • Breaches of regulations or laws
  • Decisions causing bankruptcy
  • Misuse of company or nonprofit funds
  • Overall lack of good corporate governance

While many decisions and actions are covered, every insurance policy has limits to its protections. D&O policies generally don’t cover illegal actions or misconduct that’s intentionally committed.

Client Testimonials

We value our clients’ feedback. It is through the testimonials of people like you that we are able to learn how to better serve our clients now and in the future. Would you like to share your thoughts? Please let us know! Feel free to contact us!

We have found Leah Ryan to be an outstanding agent who has our very best interests as her focus of service. The world of the insurance industry is sometimes quite confusing and intimidating to navigate through. Leah takes you by the hand in clearly explaining how your coverage works and helps you to understand where there are exposures to risk. We count her as an integral part of our company team in assisting us with our overall business strategy as it relates to our insurance needs. There aren’t enough stars on this app to rate her!

Miles B., Google Review
On December 22, 2013, our sign blew down in a wind storm. With just three crucial days before Christmas, I needed a new sign, and I needed it fast. Lonergan and Thomas were amazing. I had authorization for a temporary sign the same day and received full payment for all replacement costs, including the temporary sign. It was great having peace of mind just a phone call away from Gary Thomas at Lonergan and Thomas Insurance.
Jonah S, Google Review

I highly recommend Leah Ryan with Lonergan & Thomas! She has great customer service skills and is a pleasure to deal with. She stands behind what’s she says she will do!

Minna C, Google Review
Directors and Officers Insurance Vermont

Are fiduciary breaches covered under D&O?

Fiduciaries have unique responsibilities that should be taken into account when selecting a D&O policy. Not all policies cover fiduciary breaches of responsibility, but some may offer protection specifically for fiduciaries.

A specialized D&O insurance agent will be able to help fiduciaries find the coverage that they need.

What do Side A, Side B and Side C mean in a directors and officers policy? 

Directors and officers policies often have Side A, Side B and Side C components. These indicate different protections:

  • Side A: May give personal liability protection to the insured leader(s), especially if their organization can’t or won’t cover legal fees and settlements. For example, could be needed if the organization becomes bankrupt or financially insolvent.
  • Side B: May give liability protection to the organization, by potentially covering legal fees and settlements that are owed because of a senior leader’s actions.
  • Side C: May give publicly traded companies specialized securities-related protection; is less often used by private businesses that need entity coverage.

What expenses does directors and officers coverage pay if there’s a claim?

For eligible claims, D&O policies typically help pay legal fees, court expenses and settlements. This is consistent with most liability insurances.

How much do organizations pay for directors and officers coverage?

Organizations are often the ones to pay for directors and officers coverage. Although policies primarily protect leaders, leaders only need the protection because of their service to the organization. For this reason, businesses and nonprofits usually pay.

How much organizations pay for leaders’ coverage depends on several factors. A few are:

  • Insured leader’s role within the business or nonprofit
  • Industry, size and financial health of the business or nonprofit
  • Selected Sides and other chosen protections
  • Any previous D&O claims
Directors and Officers Insurance Vermont
General Liability Insurance Vermont

How can Vermont business and nonprofit leaders get directors and officers insurance?

For help choosing directors and officers insurance, contact the independent insurance agents at Lonergan & Thomas Insurance. Our team of Vermont agents will make sure you find a D&O policy that provides solid protection.

Request a quote or contact an agent.