At ContractorNerd, we’ve modernized the traditionally complex process of Directors & Officers (D&O) insurance. Our digital platform and team of specialized brokers help you obtain multiple quotes, bind coverage, and access proof of insurance certificates in days, not weeks. No more redundant paperwork, phone tag with agents, or waiting for documents to arrive by mail.

What Does D&O Insurance Cover?

D&O insurance protects corporate directors and officers when they’re personally sued for actual or alleged wrongdoing while serving as company officers. It covers defense costs and damages arising from allegations of wrongful action. For contractors managing complex projects and navigating regulatory compliance, this coverage shields personal assets from potential business liabilities.

Three Sides of Coverage

Side A Coverage: Protects directors and officers when the company cannot or will not indemnify them (bankruptcy or legal prohibition).

Side B Coverage: Reimburses the company for costs incurred when indemnifying directors and officers.

Side C Coverage: Protects the company itself from direct claims – essential for privately-held contractors facing claims from creditors, vendors, or partners.

Why Contractors Need D&O Coverage

Personal Asset Protection

Without D&O coverage, executives’ personal assets—such as homes, savings, and investments—are at risk. A single lawsuit over a failed project could financially devastate individual leaders.

Talent Attraction

Top executives expect D&O coverage before joining construction companies. It’s become essential for attracting experienced leadership.

Bankruptcy Protection

D&O insurance provides crucial protection if the company faces financial distress, ensuring executives have defense coverage even if the company cannot indemnify them.

Project Complexity

Construction involves significant investments, complex contracts, and numerous stakeholders. Daily decisions by directors and officers could trigger lawsuits from clients, subcontractors, or employees if projects fail.

Private Company Considerations

Unlike public company D&O, private contractor policies respond to claims from:

  • Minority shareholders
  • Creditors and lenders
  • Vendors and suppliers
  • Joint venture partners
  • Competitors (antitrust claims)

Watch for contractual liability exclusions, although defense costs and individual liability are often still covered, even in contract disputes.

Key Policy Features

Critical Elements to Review

  • Wrongful Act Definition: Should broadly include any error, omission, or breach of duty
  • Prior Acts Coverage: Ensure adequate retroactive date for historical coverage
  • Severability: Protects innocent insureds from others’ wrongful acts
  • Defense Cost Advancement: Preserves cash flow during litigation

Common Exclusions

  • Deliberate fraud (though defense costs covered until final adjudication)
  • Prior known claims
  • Bodily injury/property damage (covered by GL)
  • Professional services (requires E&O coverage)
  • ERISA violations (requires Fiduciary Liability)

Factors Influencing Premiums

  • Company Financials: Revenue, profitability, debt levels
  • Corporate Structure: Board size, ownership complexity, subsidiaries
  • Industry Factors: Project types, geographic territories, union status
  • Claims History: Prior D&O claims, employment disputes, regulatory issues
  • Risk Management: Governance procedures, HR policies, compliance programs

Current Market Challenges

The D&O market has hardened significantly with rates increasing 15-30% annually due to:

  • Rising litigation frequency and “nuclear verdicts”
  • Supply chain disruptions causing project disputes
  • Enhanced regulatory enforcement
  • Many insurers exiting construction D&O

Most carriers now require:

  • Bundling with other management liability coverages
  • Higher minimum premiums
  • Detailed financial documentation
  • Strong governance practices

How ContractorNerd Streamlines Your Process

Step 1: Simplified Application

Complete one streamlined digital application that formats your information for multiple carriers automatically.

Step 2: Specialized Markets

Access quotes from insurers who understand construction risks and can offer appropriate terms.

Step 3: Digital Binding

Review quotes, select coverage, and complete the entire binding process online. Receive confirmation immediately and policy documents within 1-2 business days.

Get D&O Coverage Today

Your directors and officers make decisions daily that could expose them to personal liability. Without D&O coverage, a single lawsuit could devastate their personal finances and your ability to attract qualified leadership.

ContractorNerd’s digital platform connects you with specialized insurers who understand the unique risks of the construction industry. Secure comprehensive D&O insurance that protects personal assets, preserves company resources, and provides peace of mind for bold business decisions.

Use ContractorNerd’s modern platform to efficiently secure the D&O insurance your contracting business requires. Get quotes from leading insurers, compare options, and bind coverage digitally – all in a fraction of the time traditional channels require.