Shield Your Leadership and Board From Personal Risk
If you serve as an owner, executive, or board member—even in a small business or nonprofit—your personal assets could be at risk from lawsuits over business decisions. Directors and Officers (D&O) insurance pays for legal defense, settlements, and judgments if you’re accused of mismanagement, breach of duty, or other leadership mistakes. Broken Spoke Insurance helps Texas companies, startups, and nonprofits secure D&O coverage so their leaders can make bold decisions without fear of personal loss.
What D&O Insurance Covers
Defense Costs & Settlements
Covers attorney fees and payouts if executives or board members are sued for business decisions.
Claims of Mismanagement
Shareholders, investors, or competitors may sue for financial losses due to alleged errors in company oversight.
Breach of Fiduciary Duty
Protects against claims that leaders failed to act in the best interest of the company or organization.
Regulatory Investigations
Pays for legal costs tied to government or industry investigations of your management.
Nonprofit & Volunteer Board Protection
Extends to volunteers, ensuring they aren’t exposed to personal liability for governance decisions.
Example Claims:
A shareholder sues over financial losses, an employee names executives in a lawsuit, a donor or grantor claims nonprofit board misused funds, or a competitor alleges anti-competitive actions.
Common Gaps and Risks for Texas Organizations
Assuming only public companies need D&O (private and nonprofit claims are common)
Lacking coverage for volunteer or advisory board members
Not updating policies when bringing on new investors, partners, or directors
Underestimating legal defense costs (even groundless suits can be six figures)
Overlooking management liability bundles (D&O + Employment Practices + Fiduciary)
If You’re Not Sure What You Need
Small or Family Business?
Any organization with a leadership team or investors can face D&O lawsuits, even without a formal board.
Running a Nonprofit or Church?
Board members are personally at risk for decisions—D&O protects their peace of mind so they can focus on the mission.
Forming a Startup or Raising Capital?
Many investors and quality board candidates require D&O before getting involved.
Need Broader Coverage?
Ask about management liability packages that bundle D&O with Employment Practices Liability (EPLI) and Fiduciary coverage for total protection.
Get Guidance From Local Experts
Broken Spoke Insurance works with businesses and nonprofits across Texas—helping leaders, founders, and board members sleep better at night. We tailor D&O coverage to your organization’s size, industry, and risk, with common limits of $1M–$2M or more. Let’s discuss your exposures and get the right policy in place.
Your Experience, Step by Step
First, we review your company or nonprofit’s leadership structure, ownership, and risk profile. Then, we recommend D&O coverage options and limits to fit your needs. We shop specialized carriers, deliver fast quotes, and provide ongoing support as your board or leadership changes.
Compare Your Options Clearly
| Scenario/Need | D&O Insurance | General Liability | EPLI | Management Liability Bundle |
|---|---|---|---|---|
| Covers board/executive lawsuits | Yes | No | Sometimes (HR only) | Yes |
| Shields personal assets of leaders | Yes | No | No | Yes |
| Needed by nonprofits & startups | Yes | Yes | Sometimes | Yes |
| Covers HR/employment lawsuits | No | No | No | No |
Not sure which fits? We’ll walk you through the options.
Your Questions, Answered Clearly
What does D&O insurance cover?
Defense and settlements for lawsuits over management, board, or executive decisions.
Do small businesses or nonprofits need D&O?
Yes—claims can come from investors, donors, competitors, employees, or regulators.
How much D&O coverage should I buy?
We help you choose limits that fit your risk, ownership structure, and contracts.
Can I bundle D&O with other management policies?
Yes—management liability packages can include D&O, EPLI, and Fiduciary coverage.
How much does D&O insurance cost?
Premiums depend on company size, risk, and coverage limits. We shop the best deals.
Protect the People Behind the Business
Make bold decisions and serve on boards with confidence—Broken Spoke Insurance will help you secure the right D&O coverage, so your leadership and mission are always protected.