Policyholder Services

What does Directors & Officers (D&O) insurance cover?

This coverage protects directors and officers against liability exposures associated with the operation of ophthalmic corporate entities and partnerships.

Although OMIC does not provide this type of insurance directly, we have arranged for access to this coverage through Lloyds of London underwriters.

Who is covered?
Any past, present or future director, officer, general partner or partnership manager and the estate or assigns of such are all covered under this policy. The company is also insured as well as subsidiaries or partnerships.

What claims are covered?
The policy will reimburse the Insured for losses due to civil, criminal, administrative or regulatory proceedings based upon actual or alleged acts, errors, omissions, misstatements, neglect or breach of duty committed or allegedly committed by an Insured in his or her specified capacity.

What losses are covered?
The policy covers defense expenses and monetary damages or settlements. The policy does not cover wages, fines, taxes, penalties or multiplied damages.

What prior acts are covered?
The policy covers claims made and reported after inception based upon incidents unknown to the company that occurred any time before the policy effective date. However, Retroactive Dates may be applied.

What are the coverage limits?
Coverage is provided on a claims made and reported basis. Limits are available up to $1,000,000 per claim and annual aggregate, with a $5,000 deductible per claim.

What are typical claims?

Example #1: A bank will sue the entity or directors or officers because the entity negotiated a line of credit with the bank and subsequently defaulted on the loan. The bank will allege that they misrepresented their business viability.

Example #2: A state agency will bring a securities action against the entity if state required filings are not fulfilled when an entity growing through acquisition offers ownership to doctors from the newly acquired entity.

These questions and answers are for informational purposes only. They are not intended to be a modification of the terms and conditions of the OMIC/Academy-sponsored insurance policies. Various coverages may not be available in all states.


Although OMIC does not provide this type of insurance directly, we have arranged for access to this coverage through Lloyds of London underwriters.

Contact the program representative, Dana Pollard Carulli, at NAS Insurance Services (877) 808-6277 or dcarulli@nasinsurance.com.

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Supporting your specialty.

OMIC was founded by members of the American Academy of Ophthalmology nearly a quarter century ago and is the only carrier sponsored and endorsed by AAO. OMIC is also endorsed by 54 other ophthalmic societies. The OMIC partnerships with state and subspecialty societies qualifies their members for an exclusive 10% premium credit. Contact your state society for details.