Directors & Officers Liability Insurance
Directors & Officers Liability Insurance Information
What is Directors & Officers Liability Insurance?
Many businesses struggle with the question of whether or not this type of policy is necessary, but to clarify the importance of this kind of policy, it protects small businesses who are being sued with frequency, keeping your assets and finances protected from the risk of losing them, especially if you are a publicly owned company, you borrow money, you have outside board members or shareholders, or are subject to government regulation.
Directors and Officers insurance is typically inexpensive and in most cases if a business has received outside capital oftentimes you’ll be required to carrier Directors and Officers insurance on the Board Members and Officers. Directors and officers liability insurance covers a company’s directors and officers for claims made against them. Also known as Directors & Officers Liability Insurance, the policy protects against allegations of wrongful acts when acting as company executives. Wrongful acts may consist of misstatements, errors, breaches of duty and more.
Directors & Officers Liability Insurance is recommended for publicly traded and VC backed companies with a corporate board or advisory committee. Many investors and board members may refuse involvement unless this protection is in place.
What are the benefits of Directors & Officers Liability Insurance?
Employees, stockholders and customers are able to make claims against a company and its directors. Whether grounded or frivolous, the resulting legal expenses and reputation damage can be extensive. Directors and officers can be held responsible for the acts of a company, which puts their personal assets at risk.
Directors & Officers Liability Insurance protects companies and their officers from criminal, civil and regulatory proceedings from allegations of wrongful acts.
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Protect your company’s interests. Call us to learn more about the benefits of Directors & Officers Liability Insurance. We will discuss you needs and search for a policy that best matches your business’s needs.