Directors & Officers (D&O) Insurance
Protecting the Decision-Makers Behind Your Business
Every business and nonprofit relies on its leadership to make strategic decisions and guide day-to-day operations. But what happens if a director or officer is personally named in a lawsuit? D&O insurance in California can help cover the cost of defending against claims of mismanagement, breach of duty, or wrongful acts tied to leadership decisions.
Whether you lead a nonprofit based in Culver City, manage a growing HOA in Pasadena, or run a private company in downtown Los Angeles,
Directors & Officers liability insurance helps protect those at the top—so they can lead with confidence.
What Does D&O Insurance Actually Cover?
D&O insurance is designed to cover claims brought against company directors, officers, board members, or trustees over the decisions they make while acting in their official capacity. It can help with:
Allegations of mismanagement or negligence
Breach of fiduciary duty
Employment practices claims (when bundled with EPLI)
Misuse of funds or failure to follow bylaws (especially in nonprofits)
Misleading statements or omissions
Coverage typically includes legal defense costs, settlements, and judgments—regardless of whether the claim has merit. And importantly, it protects the individuals, not just the organization.
Who Needs Directors & Officers Insurance in California?
Contrary to common belief, D&O insurance isn’t just for big corporations. It’s just as critical for:
- Privately held businesses – especially those with outside investors, advisory boards, or growth-stage leadership
- Nonprofits and charities – where board members often volunteer and want liability protection
- Homeowners Associations (HOAs) – where disputes among members can lead to legal claims
- Startups and family-owned companies – navigating growth and complex decision-making
If your organization has a leadership team making financial, operational, or policy decisions—it’s time to consider
executive liability coverage.
Why Work With Derian Insurance for D&O Coverage?
At Derian Insurance, we don’t sell cookie-cutter policies. We tailor management liability insurance to your organization’s size, risk level, and budget. Our agency has experience placing D&O policies for:
Nonprofits with tight funding but high public visibility
HOAs facing ongoing legal challenges
Small business owners balancing growth with personal risk
California companies navigating complex governance or investment requirements
We’ll explain how D&O interacts with your existing commercial coverages, help you meet board expectations, and make sure you’re covered for what matters—without paying for what you don’t need.
D&O Insurance FAQs
What’s the difference between D&O and general liability insurance?
General liability covers third-party injuries and property damage. D&O insurance covers lawsuits tied to leadership decisions and corporate governance—two different worlds.
Do small businesses need D&O insurance?
Yes, if you have a board, investors, or make decisions that could financially impact others. Even a small decision can trigger big legal consequences.
Is D&O only for public companies?
No. Many private companies and nonprofits in California carry D&O to protect their leadership and attract board members.
What doesn’t D&O insurance cover?
It generally doesn’t cover intentional illegal acts, fraud, or claims involving bodily injury (those fall under other coverages). Also, employment claims often require Employment Practices Liability (EPLI)—we can bundle if needed.
Protect Your Leaders, Protect Your Mission
No leader wants to be personally liable for doing their job. With the right directors & officers insurance, your organization can move forward without putting individuals at risk.
Let’s talk about the right coverage for your board, executives, or founders. Derian Insurance makes it easy to get a tailored quote—and the peace of mind that comes with it.