Personal Director’s Liability Insurance

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PDL insurance to supplement D&O insurancePersonal Director’s Liability insurance, or PDL insurance, is an increasingly common type of coverage for individuals who serve on corporate or nonprofit boards, and who open themselves to related exposures as a result. Some facts to consider:

Your Personal Umbrella Policy Can’t Address All Board Service-Related Lawsuits

According to the International Risk Management Institute (IRMI),  “because an umbrella policy only covers claims arising out of bodily injury, property damage, and personal injury, [personal] umbrella coverage clearly doesn’t replace the need for [a] board to carry D&O coverage.” Individually, it might make sense for board members to secure PDL insurance because…

Board Members Are Often Under-insured

Even with D&O coverage in place, personal assets may be at risk. Certain board member actions are “un-insurable” (e.g. fraud, gross negligence, breach of duties, etc.). Other loss events may test the financial solvency of the entity in question, thus exposing directors on a personal level. In the case of nonprofit boards, D&O policies are often purchased at a minimum or insufficient level. Moreover, D&O coverage is shared across all board members, meaning you’re covered by only a fraction of the total limit.

Do you have questions about your exposures as a board member? Call our team at 508.339.2951!