In today’s litigious environment, the personal assets of your leadership team are at risk every time they make a corporate decision. Directors and Officers (D&O) Liability Insurance—often called “Management Liability”—protects the individuals who lead your company from personal financial loss resulting from lawsuits alleging “wrongful acts” in their capacity as leaders.
At Barefoot Insurance Broker, we provide D&O solutions to private companies, nonprofits, and public entities in almost every state, ensuring your board can lead with confidence and security.
Why D&O Coverage Matters
Standard General Liability policies protect your business from physical risks like slip-and-falls. They do not protect your executives from claims of financial mismanagement or breach of duty. Without D&O insurance, your directors and officers could be held personally liable, meaning their homes, savings, and personal investments are on the line in a corporate lawsuit.
Recommended Coverage
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Side A Coverage: Directly protects the individual directors and officers when the company is unable (or legally prohibited) from indemnifying them.
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Side B Coverage: Reimburses the company when it pays to indemnify its leaders for a loss.
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Side C (Entity) Coverage: Protects the corporation itself when it is named as a defendant alongside the directors.
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Employment Practices (EPLI) Integration: Often bundled with D&O to protect against claims of wrongful termination or harassment directed at the board.
Coast-to-Coast Claims Scenarios
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The Minority Shareholder Suit: A minority shareholder in a private firm sued the board, alleging they breached their fiduciary duty during a merger; D&O covered the millions in legal defense and settlement costs.
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The Regulatory Investigation: A state agency launched an investigation into a nonprofit’s use of grant funds; the policy funded the legal team required to represent the board during the inquiry.
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The Competitor Dispute: A competitor sued a company’s executives, alleging they used “predatory” trade secrets to gain a market advantage; D&O handled the defense of the individuals named.
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The Mismanagement Claim: After an unexpected bankruptcy, creditors sued the officers personally, claiming they ignored red flags and mismanaged the company’s debt; Side A coverage protected the executives’ personal assets.
Why Choose Barefoot?
Board liability isn’t just about what happens in the office; it’s about state-specific corporate governance laws and national regulatory trends. Because Barefoot Insurance Broker operates nationwide, we understand the varying legal landscapes your board must navigate. We work with the world’s leading management liability underwriters to build a policy that attracts top-tier talent to your board by offering the highest level of personal protection.