Directors & Officers (D&O) Insurance for Louisiana Organizations
Shield Your Leaders from Personal Lawsuits
Directors & Officers Insurance protects your organization's decision-makers-executives, board members, and officers-against lawsuits over how they manage the business. It covers legal defense, settlements, and judgments if they're personally sued for alleged wrongful acts, like mismanagement, breach of duty, or misuse of funds. Without D&O, their personal assets (home, savings) can be at risk.
Common Claims and Coverage Features
Intentional fraud or criminal acts are not covered.
Defense Costs
Pays for lawyers and court expenses in a covered lawsuit
Settlements & Judgments
Covers amounts awarded in claims of mismanagement, breach of fiduciary duty, or regulatory actions
Third-Party Claims
Investors, employees, competitors, clients, donors, or even government agencies can sue directors or officers
Employment-Related Claims
Often includes coverage for allegations tied to employment decisions (check for EPLI inclusion or separate policy)
Entity Coverage
Many D&O policies also protect the organization itself (not just individuals)
Not Just for Big Corporations-Essential for Small Businesses & Nonprofits
Any organization with a board or key leaders should consider D&O coverage:
Private companies and startups with investors or partners
Nonprofits and associations (board members often require it to serve)
Firms with contracts, vendors, or external stakeholders
Even small, family-run businesses with outside advisors
Over 1,500 D&O claims are filed each year-60% against private firms or nonprofits, not just Fortune 500s.
Lawsuits Happen-Protect the People Who Lead
1 in 4 private companies has faced a D&O lawsuit, with average losses of $387,000
Board members' personal assets can be targeted-D&O insurance puts a shield between them and financial ruin
Nonprofit volunteers often demand D&O before joining a board-it's a sign of responsible governance
Real-Life Examples
A competitor sues your company, alleging a director made misleading statements
An investor claims mismanagement of funds led to losses
An employee or ex-CEO sues a nonprofit board over a termination or decision
A government agency investigates board actions
D&O Insurance Questions-Answered
What does D&O insurance cover?
Legal defense, settlements, and judgments for management decisions, board actions, and more
Do nonprofits need D&O insurance?
Yes-board members are personally liable and often require this coverage before serving
How much does D&O cost for small businesses?
Costs vary, but it's often a fraction of potential lawsuit losses; policies are tailored to your size and risk
Who can sue directors or officers?
Investors, employees, competitors, customers, and regulators are all common sources of claims
Is fraud covered?
No-intentional wrongdoing is excluded
Protect Your Board-Request a D&O Insurance Quote
Don't leave your organization's leaders exposed. Get a tailored D&O policy from local experts-keep your business or nonprofit running strong, no matter what legal challenges arise.
