Directors & Officers Insurance (D&O)
Protecting Your Leadership Team for Confident Decision-Making
Every organization depends on leaders who make important decisions. Those decisions shape strategy, finances, compliance, and long-term direction. When claims arise related to how an organization is managed, directors and officers may be held personally responsible. Directors and Officers (D&O) Insurance helps protect both the individuals who serve in leadership roles and the organization they represent.
At Ward & Co. Insurance, we help Chicago businesses, nonprofits, and growing organizations understand the risks facing their leadership teams. We simplify policy details, clarify what is and is not covered, and design plans that support your structure, industry, and goals.
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Why D&O Insurance Matters
Leadership decisions can lead to allegations even when leaders act in good faith. Businesses and nonprofits of all sizes face claims involving finances, governance, misrepresentation, conflicts of interest, or failure to follow regulations. Defending these claims can be costly. Without insurance, leaders may face personal financial exposure.
D&O Insurance provides protection for the legal defense costs and settlements associated with these management-related claims. It helps organizations recruit qualified board members and officers by offering reassurance that their personal assets are not at risk while serving.
How We Support Your Organization Leaders
We designed our advisory process to respect your time while ensuring your coverage is thorough and aligned with your goals. Our Advisory Process
We Learn Your Leadership Structure and Governance
Board responsibilities, decision-making, financial oversight, and bylaws all shape your D&O risk profile.
We Evaluate Existing Protection for Leaders and the Organization
We review Side A, B, and C coverage to ensure your directors, officers, and entities are all properly protected.
We Tailor Coverage to Reflect Your Mission and Risk
Nonprofits, private companies, startups, and associations each need different protection — we design accordingly.
We Adjust as Your Organization Grows
New leadership, new funding, mergers, or added programs can shift risk, and we proactively adapt your coverage.
What D&O Insurance Covers
D&O Insurance typically includes three parts that work together to protect individuals and the organization.
Side A Coverage
Protects individual directors and officers when the organization cannot indemnify them. This supports personal asset protection.
Side B Coverage
Reimburses the organization when it indemnifies its directors or officers for covered claims.
Matching coverage to your life stage
Your insurance needs to grow and change over time. We build plans that fit your current chapter.
Side C Coverage
Provides protection for the organization itself when it is named in certain types of lawsuits, including claims tied to governance, management, or investor communications.
Common protections within a D&O policy
Legal defense costs
Settlements or judgments related to covered claims
Allegations of breach of duty, mismanagement, errors in oversight, or failure to follow bylaws
Claims from employees, investors, donors, regulators, or stakeholders
D&O does not cover bodily injury, property damage, fraud, or intentional misconduct. We help you understand where D&O ends and where complementary policies, such as Employment Practices Liability Insurance (EPLI), may be helpful.
Who Should Consider D&O Coverage
D&O Insurance is widely used across many industries because leadership liability is not limited to large corporations. Organizations that benefit often include:
- Small and mid-size businesses
- Family-owned businesses with formal leadership roles
- Professional and financial service firms
- Boards, committees, and advisory groups with decision-making responsibility
- Nonprofits and associations
- Startups and rapidly growing companies
- Real estate investment groups
- Healthcare practices and clinics
If your organization has directors, officers, trustees, or an advisory board, D&O coverage may be essential to supporting confident decision-making and long-term sustainability.
Understanding the Price of D&O Insurance
Pricing for D&O Insurance varies based on organizational size, leadership structure, industry, revenue, and claims history. Current market research shows:
Small and mid-size businesses often pay about $1,500 to $2,000 per year for a standard D&O policy.
Many smaller organizations pay less than $100 per month.
Higher-risk industries or businesses with complex governance may see higher premiums.
Growing companies, companies with investors, and organizations that raise capital often require higher limits.
Nonprofits often pay significantly less due to lower financial exposure.
Cost also depends on your chosen limits, retention amounts, and whether your policy includes Side C or blended management liability features.
What Affects Your D&O Premium
Insurers consider several factors when evaluating a D&O policy:
Industry Risk
Regulated industries like healthcare, finance, real estate, and technology have more exposure.
Financial Stability
Clear, transparent reporting and strong financial practices support better pricing.
Governance Practices
Documented bylaws, meeting minutes, board oversight, and transparent operations create a positive risk profile.
Organizational Size
More employees, more revenue, or an expanded footprint increases risk.
Claims History
Past litigation or frequent legal concerns can increase premiums.
Coverage Structure
Higher limits and broader protection lead to higher premiums, while higher retentions often reduce costs.
Ways to Improve Your D&O Coverage and Manage Costs
1- Strengthen Governance and Internal Controls
Clear decision-making processes and transparent reporting reduce exposure.
2- Maintain Accurate and Timely Financial Statements
Organizations with stronger documentation often receive better pricing.
3- Provide Leadership Training and Compliance Education
Improved oversight lowers the risk of governance-related claims.
4- Review Roles and Responsibilities Regularly
Clarifying positions limits confusion and reduces liability exposure.
5- Combine D&O with Complementary Policies When Appropriate
Pairing D&O with EPLI, fiduciary liability, or cyber liability can streamline your program and may support cost efficiency.
6- Adjust Limits as Your Organization Grows
Scaling coverage with your risk profile ensures you stay protected without overpaying.
Frequently Asked Questions
No. Smaller companies and nonprofits face leadership-related claims frequently. Any organization with decision-makers may benefit.
No. Fraud, criminal acts, and intentional harm are excluded.
Board members can face allegations from donors, volunteers, employees, grant providers, or community partners. D&O protects volunteer leaders and organizational resources.
Coverage depends on your organization’s size, financial exposure, number of board members, and risk tolerance. Many smaller organizations start with around one million dollars in protection.
Yes. Combining policies is common and often supports more efficient protection for leadership and employment-related risks.
Get a Quote
Connect with a Ward & Co. Insurance advisor today to build a Directors and Officers insurance plan that protects your leadership team and supports your long-term goals.