The Difference Between D O and Public Officials Liability Insurance

Employers of high-ranking professionals understand that protecting them from liability is the only way to keep talented individuals in their positions. Whether employers offer this protection with directors and officers or public officials liability insurance depends on the type of institution they manage. Here is the difference between the two types of policies.

Directors and Officers Liability

D & O insurance covers individuals in corporate leadership positions from claims of mismanagement from clients, vendors, employees, or others associated with the business. The primary purpose of this coverage is to protect the directors and officers from being personally responsible for paying court costs and settlements from their own personal assets.

Public Officials Liability

Public officials liability is similar to D & O in that it protects top-ranking employees from being personally liable for lawsuits. The primary difference is that it covers elected and appointed officials, rather than directors and officers of a corporation. Another difference is that it also covers employees, volunteers, and the public entity or governing body itself.

Professionals in leadership positions know that the threat of lawsuits is part of their jobs. For those holding public office, this risk extends to everyone around them. For that reason, having a good public officials liability policy should be a priority of any administration.