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Professional Services Insurance

Directors & Officers Insurance
for Professional Services

Directors and officers of professional service firms can be personally sued by clients, investors, employees, or regulators for decisions made in their management role. D&O insurance pays for individual executives' legal defense and any resulting settlements, protecting personal assets from business decisions.

Industry-Specific Insight

Why Professional Services Businesses Need Directors & Officers Insurance

Directors and officers of professional service firms can be personally sued by clients, investors, employees, or regulators for decisions made in their management role. D&O insurance pays for individual executives' legal defense and any resulting settlements, protecting personal assets from business decisions.

Coverage Details

What Directors & Officers Insurance Covers

Key protections included in a directors & officers policy for professional services operations.

Personal liability protection for directors and officers sued for management decisions
Legal defense costs for lawsuits alleging mismanagement, breach of fiduciary duty, or fraud
Coverage for securities claims from shareholders alleging misleading statements or financial mismanagement
Employment practices claims brought by employees against company leadership
Regulatory investigations and regulatory defense costs
Indemnification reimbursement when the company covers a director or officer's legal costs

FAQs

Common Questions from Professional Services Businesses

Does D&O cover claims from unhappy clients?

D&O covers claims against directors and officers in their management capacity. Client service claims are typically addressed by E&O. However, claims alleging breach of fiduciary duty or misrepresentation by management may fall under D&O.

Do small professional firms need D&O insurance?

If you have a board of directors, investors, or managing partners, D&O is worth considering. Claims against management decisions happen at firms of all sizes.

Does D&O insurance cover fraud?

D&O policies typically exclude coverage for actual fraud or criminal acts where guilt is established. However, they do cover defense costs during an investigation — coverage ends if fraud is proven. This is an important distinction when reviewing policy terms.

Is D&O the same as general liability?

No — general liability covers third-party bodily injury and property damage. D&O specifically covers personal liability of executives and board members for their governance and management decisions.

Complete Coverage

Other Coverages Professional Services Businesses Commonly Need

A complete protection plan for professional services operations typically includes several complementary coverages.

We serve professional services businesses in:

Professional Services · Directors & Officers

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