Directors & Officers Insurance for Myrtle Beach Businesses

What Is Directors and Officers Insurance?

Directors and officers insurance—commonly called D&O insurance—protects company leaders from personal liability when their management decisions are challenged. If a director, officer, or board member is sued for alleged wrongful acts committed while managing the company, D&O coverage pays legal defense costs, settlements, and judgments that would otherwise come from personal assets.

For Myrtle Beach businesses with formal leadership structures, D&O insurance provides essential protection. Directors and officers can be held personally liable for decisions ranging from hiring practices to financial management to regulatory compliance. Without D&O coverage, a single lawsuit could devastate the personal finances of your company's leadership.

Why Myrtle Beach Businesses Need Directors and Officers Insurance

Management liability claims don't require actual wrongdoing—just allegations of wrongful acts. D&O insurance addresses this reality:

• Personal assets are at stake. When someone sues a director or officer personally, they're pursuing that individual's home, savings, investments, and other personal assets. D&O insurance creates a buffer between lawsuits and personal wealth.


• Defense costs are substantial. Even baseless claims require expensive legal defense. Attorney fees, expert witnesses, and litigation expenses can reach six figures before any settlement discussion begins. D&O coverage pays these costs.


• Claims come from multiple directions. Shareholders, employees, competitors, creditors, regulators, and customers can all bring claims against company leadership. The exposure is broader than most executives realize.


• Qualified leaders expect protection. Experienced directors and officers understand their liability exposure. Many refuse board positions or executive roles at companies without D&O insurance in place.


• Small companies aren't immune. Private businesses, family companies, and nonprofits in South Carolina face D&O claims just like public corporations. Size doesn't eliminate exposure—it just changes who's likely to sue.

What Does Directors and Officers Insurance Cover?

D&O policies are structured with multiple coverage parts that respond to different claim scenarios:

Side A Coverage: Individual Protection

Side A coverage protects individual directors and officers directly when the company cannot or will not indemnify them. This happens when the company is bankrupt, when indemnification is legally prohibited, or when the company refuses to advance defense costs. Side A coverage ensures executives have protection regardless of what happens to the company.

Side B Coverage: Corporate Reimbursement

Most companies indemnify their directors and officers—meaning the company pays legal costs and settlements on their behalf. Side B coverage reimburses the company for these indemnification payments. This protects the corporate balance sheet from the financial impact of management liability claims.

Side C Coverage: Entity Protection

Side C coverage—also called entity coverage—protects the company itself when it's named as a defendant alongside individual directors and officers. Securities claims, in particular, typically name both the company and its leadership. Side C ensures the corporate entity has coverage, not just the individuals.

Types of Claims D&O Insurance Covers

Directors and officers insurance responds to a wide range of allegations:

Breach of fiduciary duty. Claims that directors failed to act in the company's best interest, made self-dealing transactions, or violated their duty of care or loyalty.

Mismanagement allegations. Suits claiming poor business decisions led to financial losses, whether from shareholders, creditors, or the company itself.

Employment practices claims. Wrongful termination, discrimination, harassment, and retaliation claims can name individual executives as defendants alongside the company.

Regulatory investigations. When government agencies investigate company practices, D&O coverage can pay for legal representation and defense costs.

Financial misrepresentation. Allegations of misleading financial statements, inaccurate disclosures, or securities violations against company leadership.

Creditor claims. In financial distress or bankruptcy situations, creditors may sue directors for decisions that allegedly diminished their recovery.

What Directors and Officers Insurance Does Not Cover

D&O policies contain important exclusions:

• Intentional wrongdoing and fraud. Coverage applies to alleged wrongful acts, not proven intentional misconduct. If a court determines a director committed fraud, coverage typically doesn't apply.


• Criminal acts. D&O insurance doesn't pay fines, penalties, or defense costs for criminal prosecutions—though some policies cover defense costs until a criminal conviction.


• Illegal personal profit. If an executive personally profited from illegal conduct, D&O coverage won't respond.


• Prior acts and pending litigation. Claims arising from acts before the policy period or lawsuits pending when coverage begins are typically excluded.


• Bodily injury and property damage. These exposures belong to general liability coverage, not D&O policies.


• Insured vs. insured claims. Many policies exclude claims brought by one insured against another—for example, the company suing its own directors.

Who Needs Directors and Officers Insurance?

Any organization with formal leadership structure faces D&O exposure:

Corporations with boards. Both public and private corporations with boards of directors need D&O coverage to protect board members and officers from personal liability.

Privately held companies. Family businesses, closely held corporations, and private equity-backed companies face management liability claims from investors, creditors, and employees.

Nonprofit organizations. Board members of Myrtle Beach nonprofits serve without compensation but face the same personal liability as corporate directors. D&O coverage is essential for recruiting qualified volunteer board members.

Startups and growth companies. Venture-backed businesses and companies seeking investment typically need D&O insurance before closing funding rounds. Investors require it.

Professional service firms. Law firms, accounting practices, and consulting firms with partnership or corporate structures benefit from D&O protection for firm leadership.

D&O Insurance for Private Companies vs. Public Companies

While the core coverage remains similar, significant differences exist:

Private company D&O typically faces claims from employees (employment practices allegations), business partners, creditors, and occasionally minority shareholders. Policies often include employment practices liability and broader entity coverage.

Public company D&O deals heavily with securities claims, shareholder derivative suits, and SEC investigations. Coverage is more complex, limits are higher, and premiums reflect the increased exposure that comes with public markets.

Most Myrtle Beach businesses fall into the private company category, but the principles of protecting leadership from personal liability apply equally.

How Much Does Directors and Officers Insurance Cost in South Carolina?

D&O premiums vary based on company-specific factors:

• Company size and revenue. Larger companies with more assets and higher revenue typically pay higher premiums due to increased exposure.


• Industry classification. Financial services, healthcare, and technology companies often face higher D&O rates due to regulatory exposure and claim frequency in those sectors.


• Claims history. Prior D&O claims or securities litigation significantly impacts pricing.


• Financial condition. Companies in financial distress face higher premiums—and may struggle to obtain coverage—due to increased creditor claim risk.


• Coverage limits and retention. Higher limits and lower retentions (the D&O equivalent of deductibles) increase premium costs.


• Board composition. Outside directors, audit committee structure, and governance practices influence underwriting.

A small private Myrtle Beach company might pay $2,500 to $10,000 annually for $1 million in D&O coverage. Mid-sized companies with more complex operations, outside investors, or higher-risk industries pay considerably more.

Why Work with Moore & Associates for Directors and Officers Insurance

Moore & Associates has served Myrtle Beach businesses since 1979. As an independent insurance agency, we work with multiple carriers offering D&O coverage in South Carolina, allowing us to compare policy forms, coverage features, and pricing to find protection that fits your organization.

Our local agents understand the management liability exposures facing businesses along the Grand Strand. We help companies from North Myrtle Beach to Georgetown evaluate their D&O needs, structure appropriate coverage, and protect the leaders who guide their organizations.

Get a Directors and Officers Insurance Quote in Myrtle Beach, South Carolina

Our directors and officers insurance agents serve Myrtle Beach, South Carolina and surrounding areas including North Myrtle Beach, Atlantic Beach, Conway, Surfside Beach, Murrells Inlet, Litchfield, Pawleys Island, and Georgetown. Contact Moore & Associates today for a free quote.