Directors & Officers for law firms
Shields partners, shareholders, and firm leadership from personal liability arising from management decisions and governance disputes.
Overview
Directors and Officers (D&O) insurance protects the personal assets of firm partners, managing shareholders, and executive committee members against claims alleging wrongful acts in their capacity as firm leaders. Covered claims include breach of fiduciary duty, mismanagement of firm finances, failure to comply with regulations, and disputes over partner compensation or equity distributions. Policies typically provide three coverage parts: Side A covers individual directors and officers when the firm cannot indemnify them, Side B reimburses the firm when it does indemnify individuals, and Side C (entity coverage) protects the firm itself against related claims.
Why it matters for law firms
Law firm partnerships and corporate structures involve complex fiduciary obligations among partners, shareholders, and of-counsel attorneys. Disputes over profit-sharing, lateral partner departures, merger negotiations, and firm dissolution regularly produce claims against firm leadership. Without D&O coverage, individual partners can be held personally liable for governance decisions, putting their personal assets at risk in ways that malpractice insurance does not address.
Typical Limits
Small to mid-size firms typically carry $1,000,000 to $3,000,000 in D&O limits. Larger firms with complex partnership structures often maintain $5,000,000 to $10,000,000 or more. Retentions range from $10,000 to $50,000 depending on firm size and claims history. Policies are claims-made and should include prior acts coverage dating back to the firm's formation to capture legacy governance decisions.
Review your directors & officers coverage
Find out if your current directors & officers meets best practices for your firm size and practice areas.