Directors and Officers Insurance in Illinois

Learn more about our directors and officers coverages and get a quote from one of our knowledgeable independent agents. Providing coverage to residents across Illinois, Arizona, Florida, Indiana, Louisiana, Michigan, Montana, Nevada, New Hampshire, Ohio, Tennessee, Texas, Washingon, and Wisconsin.

What is directors and officers insurance? 

Leading businesses comes with responsibility and, accordingly, risk too. Leaders are sometimes held individually responsible for legal decisions they make, potentially even being financially liable for their actions. Getting directors and officers insurance is one way that leaders of Illinois businesses can help protect against this sort of risk.

Directors and officers insurance is liability coverage for those in leadership positions. Coverage may help with legal fees and other costs if a leader is liable for their decision or action.

Who in Illinois can benefit from D&O insurance?

Most people in leadership positions can benefit from D&O insurance. It’s often purchased by leaders of both for-profit businesses and non-profit organizations in Illinois. For example, people holding the following positions might want coverage:

• C-Suite executives
• Presidents and vice presidents
• Chairpersons and board members
• Directors
• Treasurers and trustees
• Other senior leaders

If there’s any question as to whether a position calls for coverage, an insurance agent specializing in D&O can review potential situations where coverage could be useful. They can help determine whether a policy should be purchased for a given leadership role.

What claims does D&O insurance protect against?

D&O insurance policies can protect against a variety of situations where a leader’s decision or action harms their organization. Depending on a policy’s terms, it might cover situations arising from:

• Misrepresentations
• Misleading statements
• Violations of corporate laws or regulations
• Decisions leading to bankruptcy
• Misappropriations of organizational funds
• General lack of corporate governance 

Most policies exclude claims arising from blatantly illegal actions or intentional wrongdoing.

Are fiduciary breaches covered by D&O policies?

D&O policies may provide coverage for breaches of fiduciary duties, but whether a specific breach is covered depends on the situation and the policy’s terms. An insurance agent who knows D&O well can help fiduciaries find a policy that’ll protect them against most potential breaches of their fiduciary responsibilities.

What’s Side A, Side B and Side C D&O coverage?

D&O policies are generally comprised of up to three distinct components. These are referred to as Side A, Side B and Side C:

• Side A: Usually gives the leader personal protection if the organization won’t provide assistance, thus providing personal liability coverage for legal costs and settlements. For example, might be needed if an organization can’t pay legal fees because it’s bankrupt or insolvent.
• Side B: Usually gives the organization itself with liability protection. Might cover legal costs and settlements that an organization pays because of its leader’s action, including legal costs of defending the leader.
• Side C: Usually provides securities coverage for publicly traded companies. May provide private businesses and nonprofits with certain entity coverage.

What expenses are paid for by D&O policies?

In the event of a covered claim, D&O policies will usually help pay attorney fees, court fees and any settlement. Assistance with attorney and court fees usually begins when the claim is filed. This is pretty standard for liability insurance policies.

How much does a D&O policy cost?

The premiums that insurance companies charge for D&O policies depend on various factors, so there’s no one set price for a policy. Some of the details that can impact cost are:

• Role of the insured individual(s)
• Size and industry of the organization
• Financial health of the organization
• Selected coverage amount
• History of previous lawsuits or claims 

To get customized quotes, leaders and organizations can consult with an independent insurance agent. An independent agent can check quotes from different insurers, to see which insurance company offers the best rate for the needed protections.

Do leaders pay for their own D&O insurance?

In most cases, the organization or business shoulders the cost of a D&O policy. Leaders normally don’t themselves pay, even though they personally benefit from the coverage. This is because they only need coverage because of their work for the business.

Where can senior leaders of Illinois businesses get directors and officers insurance?

If you need help finding directors and officers insurance in Illinois, connect with the independent agents at Gee-Schussler Insurance. Our agents have worked with many professionals, businesses and senior leaders, and we’ll make sure you’re protected well.