When it comes to insuring executives, two insurance products are key: commercial general liability insurance (CGL) and directors & officers liability insurance (D&O).
CGL covers claims related to bodily injury, property damage and personal and advertising injury (e.g., slander) when any of those were caused by the action — or inaction — of the insured organization.
CGL covers the cost of the injury, property damage or personal and advertising injury claim as well as the cost to defend the organization against these claims. The policy covers executives, too, but only when they’re performing their official duties.
D&O insurance covers damages resulting from bad decisions, errors or omissions made by the organization’s directors, officers or employees.
This policy covers claims involving things like wrongful termination, discrimination and sexual harassment. It also covers claims related to poor management of funds or mismanagement of the company.
Like CGL, D&O also covers the cost to defend the organization against these claims.
Depending on the industry and type of work, more coverage might be needed. Organizations might also need workers’ compensation insurance, errors & omissions insurance or auto insurance, for example.
The slideshow above highlights four insurance coverage questions related to executive liability coverage that have been submitted to FC&S Expert Coverage Interpretation and answered by policy experts.
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