Boards Reject…

“Hold the door?”

The CFO reflexively placed her hand in front of the elevator door as the risk manager jumped in with a “thanks.”

“Hey,” the CFO said. ”Are you ready to brief the board for their annual liability coverage review?”

“Yes,” replied the risk manager. “Our broker helped us get the same coverage with better terms.”

“Good,” said the CFO. “We may need it. Also, the CEO told me that they’ll want to ask you about reputation protection. I told her that sounded like a Communications department issue. I didn’t think there was any D&O reputation insurance.”

“D&O reputation insurance?” asked the manager. “Reputation risk insurance has been around for years…and it can help pay for public relations, support or lost sales, but our Chief Risk Officer isn’t convinced reputation risk for directors even exists.”

The CFO grimaced. “She specifically said D&O reputation insurance.”

“Never heard of it,” said the risk manager, shaking his head. “But I’ll look into it and get back to you tomorrow.”

The next morning, the risk manager put two cups of coffee on the CFO’s desk and sat across from her.

“I searched online for D&O reputation insurance,” he said. “I found a product from a company called Steel City Re.”

“Steel City Re,” repeated the CFO slowly. “Never heard of them.”

“Their website says that their Side R D&O reputation insurance was released a few months ago. Maybe someone on the board heard about it?”

The CFO took a sip of her coffee. “Maybe,” she replied. “What are its competitors offering?”

“They have none,” said the risk manager. “All I found was Steel City Re’s Side R D&O reputation insurance.”

“Look harder,” said the CFO. “And before you present to the board, make sure Steel City Re’s thing…”

“Side R D&O reputation insurance,” interjected the risk manager.

“Whatever,” continued the CFO. “Make sure it actually pays.

“You got it,” the risk manager replied, grabbing his coffee and heading to his office…thinking that Side R was actually a rather clever brand name for a D&O product.

Back at his desk, the risk manager called his D&O insurance broker.

“Chad. Sorry for the call. I wanted a quick sanity check and thought I’d catch you before your daily 9 AM. Have you ever heard of Steel City Re’s Side R D&O reputation insurance?”

His sipped his coffee as he listened to Chad’s response.

“Got it,’ he said after a bit. “It’s the newest D&O protection product in 40 years, so I understand why you’re excited. I’m more interested in whether it actually pays.”

The risk manager listened.

“Really,” he said. “Reputation insurance is recommended for both companies and their boards by the Directors and Chief Risk Officers Institute and the American Law Institute? Since when?”

More listening.

“OK. Just since 2025 and no, I don’t follow the governance literature. I count on you for that. Email me what you have on it and let’s speak later this week.”

Later that day, the CFO walked into the risk manager’s office.

“The lead director called me and asked about D&O reputation insurance,” said the CFO.

“He is really shaken up by the Susan Rice Netflix thing, and then he said something that gave me pause.”

“Do say,” the risk manager replied.

“He said” —the CFO paused for dramatic effect— “For corporate directors like me, it is no more reasonable to accept personal reputational harm than to bear personal liability for board service.”

“That’s basically what Chad said,” the risk guy replied. “The governance community is really worried about having their reputations damaged, losing their board seats, and basically becoming untouchables. He said internet searches for reputation insurance last year were up 1000% over 2024.”

“Chad also said Steel City Re’s Side R D&O reputation insurance seems to be the only game in town.”

“Tell me it actually pays” demanded the CFO.

“It’s parametric data are far more nuanced than waiting for bad news to appear on social media,” the managed replied. “Tests in over a million real-world scenarios for the past quarter century say yes, Side R D&O reputation insurance pays.”

“We live in unique times,” the CFO added. “Give me recent examples.”

The risk manager pulled a list up on his phone: “3M Company, May 2023; McDonald’s May 2024; Adidas February 2023; Johnson & Johnson March 2024.”

“What about Cracker Barrel?, asked the CFO.

“Yup, that one too.”

A few days later, the risk manager got on the phone with his broker and reviewed the key points of his D&O reputation insurance presentation for the board.

“It covers the going forward personal losses of directors and officers with unrestricted funds…fine, so it protects with a pile of money,” he began. “It helps boards resist external pressure and better uphold fiduciary duties—great, it signals strategic value investors can appreciate, so it satisfies two major recommendations from the legal and governance communities in 2025.”

He listened for a bit.

“Yup, I have the Chart that illustrates how it pays with recognizable names,” he said.

“Anything else?”

“Right,” he said a moment later. “Budget. Companies are explaining to their key investors that, like with liability, boards are now drawing the line at assuming personal reputation damage. D&O reputation insurance is a ‘must have’.”

He felt confident that the board was going to appreciate his work for them.

“Thanks, Chad,” he concluded. “Yeah, I’ll put the order for Side R D&O reputation insurance through you. Promise.”

With reputation risk forecasting, management, and insurance, Steel City Re helps companies build and prove to stakeholders their thoughtful risk management and dutiful governance over all that is mission-critical. It is an authenticated story stakeholders can appreciate…and value.