What you need to know about Directors & Officers Insurance (D&O).
One of the most discussed and least understood insurance products is Directors & Officers Insurance. In short, it is liability insurance that helps to cover defense costs and damages (awards and settlements) arising out of wrongful act allegations and lawsuits brought against an organization’s board of directors and/or officers. Unfortunately, these types of claims have become increasingly common and the higher-up management themselves could be held personally liable, should someone file a claim. To attract and retain qualified executives and board members, it’s important to have this type of insurance.
What can it cover?
Directors and officers are sued for a variety of reasons related to their company roles, including:
- Breach of fiduciary duty resulting in financial losses
- Misrepresentation of company assets
- Misuse of company funds
- Fraud
- Failure to comply with workplace laws
- Theft of intellectual property and poaching of competitor’s customers
- Lack of corporate governance
Does your business need D&O coverage?
It’s a common misconception that D&O claims are mostly a public business phenomenon. Public, private, and non-profit companies all face D&O litigation risks, so it’s important to safeguard yours no matter what.
Directors & Officers Insurance is right for:
- Financial institutions
- Nonprofit organizations
- Private companies
- Public companies
Lawsuits are all too common these days. Fortunately, safeguarding your company has never been easier! At Chambers & Company Insurance Brokers, we work with you to understand your risks, exposures, and insurance protection. Visit our team today to get started on securing your policy!