Executive Liability Insurance
Attract strong leadership by keeping their personal finances protected against costly lawsuits or regulatory actions from management-related decisions.
Why does your business need it?
- Leaders can face lawsuits over their decisions
- Legal fees and settlements can drain resources
- Protect directors, officers and key managers
- Help retain leadership and investor confidence
What does our coverage do?
- Covers defense costs and settlements for claims
- Includes employment and fiduciary liability
- Protects nonprofit volunteer boards and directors
- Extends to reporting and regulatory exposures
Shield your leadership team.
Executive liability or Directors & Officers (D&O) insurance keeps your executives protected in disagreements with clients over management decisions and how they’re executed.
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Regulatory violations
Compliance errors can lead to fines and legal actions for inaccurate disclosures.
Shareholder misrepresentation
Investors could allege they were misled on company performance or forecasts.
Employment disputes
A former employee might file a claim for discrimination or wrongful termination.
Breach of fiduciary duty
Executives could face accusations of poor investment decisions or fund mismanagement.
Data privacy oversight
A cyber incident could expose sensitive data, prompting regulatory scrutiny.
Our executive liability insurance can provide coverage for
- Crime and fidelity
- Directors and officers liability
- In-house lawyer liability
- Employment practices liability
- Fiduciary liability
- Kidnap and ransom
- Regulations violations
- Reporting errors and misrepresentation
Frequently asked questions about executive liability insurance
Small and family-run businesses run many of the same risks that larger ones do, but as a smaller firm you probably lack the resources to defend yourself against accusations of wrongdoing. Executive liability insurance that aligns with the size and type of your business makes sense if you want to protect your interests, achieve your goals and reach your potential.
Examples of executive liability are misrepresentation of company assets, misuse of company funds, breach of fiduciary duty or a variety of claims brought against a business owner, company executive or member of a board of directors by customers, vendors and other third parties.
The cost of executive liability insurance will depend on several factors. For example, you could pay a lower premium if your company has a proven track record of financial and risk management stability. That’s why you should seek the expert advice of an insurance partner who can properly assess your exposure and ensure that your interests are protected.
Your policy won’t cover claims for accidental injuries or property damage to others, lawsuits arising from employment practices, illnesses and accidents suffered by employees, or illegal acts or intentional wrongdoing including fraud and personal profiting. Also, coverage for cyberattacks or data breaches is typically excluded and you would need a separate policy.
Numbers to know
Lawsuit exposure
$26M
is the average settlement in recent securities class actions. (WTW, 2025)
Nonprofit risk
63%
of nonprofits reported a D&O claim within ten years. (Dailey LLP, 2024)
Settlement costs
$4.1B
was paid out in securities class action settlements in 2024. (Woodruff Sawyer, 2024)
