Florida Directors & Officers Insurance

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Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for TrustedChoice.com on a continuous basis and is here with the facts about all your insurance inquiries.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Florida Directors and Officers Insurance

Florida has 2,500,000 small business owners. Typically, directors and officers insurance falls to the wayside for most companies. It is essential to have adequate protection for all areas of your business. 

If your operation uses a board of directors, you'll want protection. An independent insurance agent can help with policy and premium options. Connect with a local expert for customized quotes.

What Is Directors & Officers Insurance?

Directors and officers insurance, also known as D&O insurance, protects the personal assets of corporate directors and officers and their spouses. It will include coverage for non-profit organizations. 

If the board is sued by an employee, competitor, vendor, investor, customer, or another party, D&O coverage can apply in Florida. The suit will be for wrongful management of the company in most cases.  

What Is Covered Under Directors and Officers Insurance?

D&O insurance in Florida can be tricky if you're not a licensed agent. It's always good to know what your business policy covers. Take a look at what D&O insurance can protect against.

  • Misuse of company funds
  • Fraud
  • Failure to comply with workplace laws
  • Breach of fiduciary duty
  • Lack of corporate governance
  • Bankruptcy
  • Misrepresentation of company assets
  • Theft of intellectual property 

Average Directors and Officers Insurance Cost

Similar to Florida professional liability insurance, D&O falls in that same category. The cost for any board to obtain coverage will be determined on a variety of factors. Some of the items carrier use to set premiums are as follows.

  • Your operations
  • Who's on the board of directors
  • How long has your company been around
  • Are there prior claims
  • Coverage selected
  • Financial stability 

While you can't know your exact pricing without quotes, you can have an idea of what carriers use. When filling out applications, you'll need to provide full bank statements in most cases. The quoting process can get intense for this type of policy.

What Is Not Covered Under Directors and Officers Insurance?

Every business insurance policy will have exclusions. This is to protect the carrier, so every claim isn't considered valid. Take a look at common D&O exclusions in Florida.

    • Bodily injury
    • Property damage
    • Payments to governments
    • Libel and slander
    • Personal profit
    • Dishonesty
    • Failure to maintain insurance
    • Payments for officers, directors, and owners
    • Acts of corruption

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Excess Directors and Officers Insurance

Excess D&O insurance is similar to a commercial umbrella policy. It provides excess or additional coverage for a D&O claim. Your business will, of course, have to obtain an underlying D&O policy. 

In Florida, excess D&O insurance is known as follow-form coverage. Most excess policies will add various terms and conditions that can greatly impact the primary D&O policy's protection. Review this policy with a licensed professional.

Non-Profit Directors and Officers Insurance Claims Examples

Non-profit D&O insurance claims can occur at a moment's notice. If you have a board of directors in Florida, you'll want protection for any decisions that are made. If these actions cause a loss, the board will not be protected without D&O coverage. From commercial auto insurance to life insurance, claims can occur on any policy form. Take a look at some examples of non-profit D&O claims.

A claim of unethical conduct

A former board member sues, claiming that the directors and officers targeted him. He claimed that the non-profit's bylaws were not followed, and they revoked his membership due to unethical conduct.

A claim of wrongful termination

An executive sued the non-profit for wrongful termination due to sexual misconduct. There was a suit against the directors and officers for interference.

How to Connect with a Florida Independent Agent

If you're searching for the perfect directors and officers insurance policy, you might need some help. When you're not a licensed agent, you don't know what you don't know. Fortunately, your business insurance can be reviewed with a local adviser. 

An independent insurance agent will have access to several markets at once. This presents you with the best price and coverage for your operation. Connect with a Florida expert on TrustedChoice.com in minutes. 

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