Directors’ and Officers’ Liability coverage protects the company, and its directors, managers, officers and employees, from any “wrongful act” or imprudent decision that may cause financial harm.

A “wrongful act” could be a breach of duty, neglect, error, omission, misstatement, misleading statement, or other wrongful action taken or attempted.

This definition varies by policy, so it’s important that you consult with an Allen Insurance professional to clarify who is covered under your policy and for what actions. Remember that directors’ and officers’ liability is for both non-profits and for-profit companies.