Directors & Officers

Directors & Officers Liability is designed to protect the personal assets of Insured Persons against Losses arising from Wrongful Acts, defined as any actual or alleged omission, error, misstatement, misleading statement, neglect or breach of duty by an Insured Person while acting solely in the discharge of his/her duties.

Sample Policy
Coverage Summary

Claims Examples
  • A loan officer indicates to a borrower that the bank will fund the borrower’s loan request. The borrower relies on this commitment (and the loan officer’s apparent authority to make the commitment) and plans his business accordingly. The loan is subsequently not approved, leaving the borrower with no resources to take advantage of business opportunities that were based on the funding commitment. The borrower sues the loan officer who made the funding commitment.
  • A shareholder derivative action is brought against a bank’s board of directors alleging mismanagement as the directors failed to properly diversify the bank’s investment portfolio by making substantial investments in collateralized debt obligations. The shareholders seek to recover the value of the investment losses sustained by the bank. While the dollar amount of investment losses due to market fluctuation unrelated to any wrongful act is not covered, defense costs incurred to defend the directors are covered.
Features
  • Policy designed with maximum flexibility to suit the unique needs of a bank and its board of directors.
  • Limits up to $10 Million available.
  • Insured Persons include any past, present or future directors, officers, employees, honorary directors or advisory directors.
  • Losses covered include certain amounts which the Insured Persons are legally obligated to pay, including judgments, settlements, defense costs and punitive or exemplary damages (where insurable by law).
  • To protect innocent insureds, our liability policies provide “full severability,” whereby intentional misrepresentation made by one or more of the Insured Persons will not be imputed to other insureds who lack knowledge of the intentioned misrepresentations.
  • Defense costs for allegations of fraud and violations of law are paid regardless of final adjudication.

Applications for banks <$150MM in assets
All States except NY  
NY version  

Applications for banks >$150MM in assets 
All States except NY
NY version
 

Notwithstanding any language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by ABAIS of the linked materials.