Directors and officers Insurance in Vermont

What is Directors and Officers Insurance?

Organizations ask their leaders to take on significant responsibilities, and with those responsibilities comes a certain level of risk that leaders assume. Directors and officers insurance policies help protect leaders of organizations in Vermont from some of the risks that they’re exposed to.

Directors and officers insurance is a type of professional liability insurance that’s uniquely designed for people who have leadership roles. As is true with other liability insurances, directors and officers typically helps with legal costs and settlements related to covered claims.

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Who in Vermont Should Carry D&O Insurance?

Most people who assume leadership roles within for-profit or nonprofit organizations in Vermont ought to consider protecting themselves with D&O insurance. This includes executive team members, board members, chairpersons and others.

Anyone who’s unsure whether they’d benefit from the protections afforded by D&O policies can ask an insurance agent who specializes in this form of protection. A specialized agent will be familiar with the protections that D&O policies offer and be able to determine whether they’re appropriate in a given situation.

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Do Volunteer Leaders Need D&O Insurance?

While state laws may protect volunteer leaders in certain situations, volunteers who serve as board members of nonprofit organizations are sometimes still exposed to risks. They might face risks that state laws don’t shield them from, and even when laws to offer protection people may still try to file personal lawsuits.

For these reasons, many volunteers who hold major leadership positions may want D&O insurance. Policies might cover risks that state laws don’t address, and policies may help pay legal costs associated with covered personal lawsuits even if state laws do apply.

How Long Are Directors and Officers Policies’ Coverage Periods?

Directors and officers policies are typically written for one-year terms, and policyholders that need coverage for longer can usually just renew their policy or purchase another at year’s end. Those who need coverage for less than a full year may have multiple options available. A knowledgeable agent can help leaders in this situation explore their potential options and choose whichever one works best.

Who Pays the Premiums for D&O Policies?

While leaders certainly might pay for their own D&O insurance, organizations frequently pay the premiums associated with these policies. This is because the risks that these policies protect against generally are directly related to the work leaders do for organizations -- if leaders didn’t accept their position, then they probably wouldn’t need the insurance.

Are Directors and Officers Policies Expensive?

Although rates frequently vary, the premiums charged for directors and officers policies tend to be quite affordable. They’re almost certainly less than the potential cost of facing a major claim with no protection in place.

An independent insurance agent can help leaders and organizations find out how much coverage would cost in their particular situation. Unlike captive agents who are often restricted to a single carrier, independent agents are able to request quotes from multiple insurance companies and can usually do so in minutes. This makes it easy to see how much different companies would charge and compare the coverages included in each of their policies.

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How Can Leaders in Vermont Get Directors and Officers Insurance?

To get help finding directors and officers insurance for yourself or your organization’s leaders, contact the independent insurance agents at Paige & Campbell Insurance. Our agents have worked with many leaders in Vermont, and they have the freedom and expertise to help you find a policy that’s right given your organization's particular situation.

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