Connecticut Directors and Officers Liability Insurance

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We offer directors and officers liability insurance to private companies and public companies in Connecticut, including any type of LLC, corporation, partnership, joint venture, cooperative or association. Directors and officers liability insurance is a form of management liability insurance which is designed to provide coverage to directors and officers of an entity, as well as the entity itself, against claims and lawsuits for wrongful acts committed in their capacity as directors or officers of the entity.

While there is no standard D&O insurance policy, insurance companies usually provide the following coverage in Connecticut:

• Losses that directors and officers become personally liable to pay and for which they do not receive indemnification from the entity.
• Losses that entities pay to or on behalf of directors and officers as indemnification.
• Losses that the entity becomes liable to pay in connection with securities claims.
• Investigative expenses in connection with shareholder derivative demands.

D&O insurance policies in Connecticut can usually be tailored to include only a certain coverage, such as Coverage A, or to cover only certain directors.

Any company in Connecticut can be the subject of a D&O lawsuit. While directors and officers of public companies represent a large share of D&O lawsuits, directors and officers of private companies in Connecticut face increasing risks of D&O lawsuits. In addition to shareholders, D&O lawsuits are also frequently brought by customers, employees, competitors and regulators.

What are some common exclusions in D&O insurance policies in Connecticut?

Connecticut directors and officers insurance policies contain multiple exclusions. Examples of policy exclusions include, but are not limited to, the following:

• Coverage generally provided by general liability insurance, such as bodily injury, property damage, personal and advertising injury.
• Coverage generally provided by employment practices liability insurance.
• Violation of ERISA.
• Losses in any way involving pollutants and radioactivity.
• Criminal or fraudulent acts (defense may be covered in certain cases).
• Losses to entities (Coverage C) involving intellectual property rights. Directors and officers are usually covered.
• Losses to entities (Coverage C) involving product liability. Directors and officers are usually covered.
• Liabilities assumed by the insured under a contract or agreement.

The specific exclusions should be carefully reviewed by Connecticut applicants before purchasing any D&O policy.

How are D&O insurance premiums determined in Connecticut?

Insurance companies in Connecticut each have their specific and mostly unique rating plan which is used to calculate D&O insurance premiums. The basic factors of a D&O insurance rating plan are typically the entity's assets, the selected limit of liability and deductible and whether the entity is privately or publicly owned. There are multiple other factors which can impact the D&O premium calculation, including the Connecticut entity's specific industry, experience of management, claim history, and the number of years in business.

The D&O premium in can also be impacted by recent or prospective mergers & acquisitions, profitability, market capitalization, and quality of the balance sheet.

Because D&O premiums can vary widely by insurance company in Connecticut, we usually request quotes from multiple insurance companies.

Give us a call to discuss your D&O liability insurance needs.