Each business faces different liability risks. If you employ a board of directors, these professionals face unique risks that can not only affect the company’s financial health but can also be damaging to their personal assets. It is important to discuss your unique business model with your insurance agent to ensure you get the best protection for all involved.
Protect Your Directors With Liability Insurance
Directors and officers insurance protects your executives from claims filed by unhappy clients, customers, vendors and investors. Even if your staff has done nothing wrong, they could be liable for expensive legal fees. D&O coverage protects your executives and your company from legal expenses and possible settlements.
Understand the Risks That Are Covered Under D&O Insurance
Your executive team has the responsibility to maintain a financially healthy and sound company. The decisions they make can sometimes cause monetary hardship for clients. The most common claims include:
- Misappropriation of company funds
- Misrepresentation of the company’s financial health
- Failure to follow necessary laws and regulations
- Intellectual property theft claims by competitors
It’s important to understand that criminal acts by your directors are usually not covered under most D&O plans, so make sure your executives understand their role.
Investing in a comprehensive D&O plan protects your directors and your company from unwanted claims.