Durney Insurance Inc.

Directors and Officers Insurance in Washington

Directors and Officers Insurance in Washington, Arizona, California, Idaho, and Oregon.

Durney Insurance Inc. is an independent insurance agency located in Washington. We provide high-quality directors and officers insurance coverage to our communities in Washington and to residents in Arizona, California, Idaho, and Oregon.

Directors and Officers Insurance Washington

Learn More About Directors and Officers Insurance in Washington

What is directors and officers insurance?

The responsibilities that come with leadership present certain risks. Should a leader be found guilty of making an egregious error that costs their organization, the leader might actually be held liable. Directors and officers insurance may protect senior leaders of organizations in Washington from this sort of risk.

Directors and officers insurance may protect leaders of organizations from the financial liability that could follow bad decisions. Policies normally provide coverage for leaders themselves.

Directors and Officers Insurance Washington

Who in Washington does D&O insurance make sense for?

Leaders in both the business and nonprofit sectors might want D&O insurance. This includes individuals holding high-ranking positions with small businesses, corporations and charities in Washington. Some examples of who typically gets this type of policy include:

  • Chief executives (e.g. CEO, CFO, CMO, COO, etc.)
  • Presidents, vice presidents and directors
  • Chairpersons, board members and advisory partners
  • Trustees and treasurers

An insurance agent specializing in these policies can help professionals ensure they find a policy that’s well-suited for their particular position.

D&O insurance covers a range of scenarios where leaders could be sued for liability. These might include instances such as the following:

  • Misleading statement
  • Misrepresentation
  • Regulatory or legal violation
  • Misappropriation of funds
  • Poor decision leading to bankruptcy
  • Poor corporate governance

While many decisions can be covered, intentional criminal activity or intentional misconduct generally aren’t protected against.

D&O can be tailored to include coverage for fiduciary breaches. It’s important to review a chosen policy, however, to make sure the necessary fiduciary-related protection is included.

An insurance agent who knows D&O well can help check a policy’s protections for fiduciaries.

Many D&O policies are divided into three aspects: Side A, Side B and Side C: 

  • Side A: Primarily for leaders, often covering situations where organizational funds can’t cover legal fees and settlements, like in cases of financial insolvency bankruptcy.
  • Side B: Primarily for organizations, often covering legal fees and settlements in lawsuits tied to a senior leader’s action or decision.
  • Side C: Primarily securities-related protection, mostly being used by publicly traded companies. In select situations, private businesses might get this for entity coverage.

D&O policies generally cover attorney fees, court costs, and any settlements or judgments if there’s a covered event. Coverage is, of course, according to a policy’s terms and conditions. Deductibles, limits and other policy specifics often apply.

Mergers are complex processes, and they present complex insurance situations. Businesses likely need to make adjustments to their D&O coverage if merging, and coverage needs, organizational changes, and the timeline all need to be taken into account.

When businesses know they’ll be merging, they should reach out to an insurance agent who’s well-versed in D&O. An agent who knows the details of these policies can help make sure coverage is in place before, during and after the merger.

The cost of a D&O policy is normally borne by the business or nonprofit, as leaders generally only need coverage because of their service to the organization. The organization’s size, industry and financial situation often impact cost. So too can a leader’s specific role, the policy’s selected coverages and deductibles, and any recent D&O claims that might have been filed.

An independent insurance agent can help businesses and nonprofits check what their professionals’ D&O would cost. Since independent agents aren’t connected to a specific insurer, they’re able to show policy options from amount different insurers. This makes it easy to find the best coverage at the most competitive rate.

Durney Insurance Inc

Where can professionals in Washington get directors and officers insurance?

For help with directors and officers insurance, contact the independent insurance agents at Durney Insurance. Our Washington agents will work closely with you to determine coverage needs, and then help you find the best policy for meeting those needs.

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