What is Directors & Officers Liability Insurance?

Directors and Officers can be targets for lawsuits relating to founded and unfounded wrongful acts such as omissions, improper conduct, misleading statements, breach of duty, and more. This can compromise the reputation of your business and result in financial losses.

Important staff members can also be personally sued by investors, employees, vendors, competitors, and other third parties. D&O insurance covers legal fees, settlements, and can extend to protect the company if it is named in a lawsuit.

Protect Your Business

What Coverage is Available?

  • Loss of documents
  • Intellectual property
  • Claims against the insured
  • Mismanagement of operations or company assets
  • Acts beyond authority granted in by-law
  • Libel and slander
  • Joint venture liability
  • Breach of confidentiality
  • Violation of certain state and federal laws
  • Self-dealing and conflicts of interest

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7 Reasons to Consider Directors & Officers Liability Insurance

  1. Coverage: Umbrella policies often do not cover claims involving directors & officers.
  2. Investment: If you want to raise funds from investors, then they will require that you have Directors & Officers Insurance to protect their personal assets from lawsuits relating to their actions and relationship with your company.
  3. Wrongful Acts: Directors & Officers Insurance protects your key leaders from lawsuits relating to founded and unfounded wrongful acts such as omissions, improper conduct, misleading statements, and breach of duty.
  4. Investor Lawsuits: Not every business succeeds and in the event of failure or a large financial loss, investors may take legal action against a company's top executives.
  5. Employment Practice Lawsuits: In a small to medium sized business, many Directors and Officers are actively interacting with staff, and this makes them easy targets for claims relating to sexual harassment, discrimination, and wrongful termination. Directors & Officers combined with Employment Practice Liability Insurance is a smart investment to protect against these types of claims.
  6. Legal Compliance: Small to medium sized companies may not have the staff or resources to review and maintain proper legal compliance, which makes them susceptible to legal compliance lawsuits from government agencies.
  7. Unfounded Claims: It doesn't matter if the claim is founded or unfounded, the result will always be costly to defend. Directors and Officers will cover the legal expenses even if the lawsuit is unfounded.

 

Make Sure You Have the Right Coverage

 

How Can Businesses Get Directors & Officers Liability Insurance?

For help finding an D&O policy that will provide your business with robust protection, contact the independent insurance agents at World Insurance Associates. Our agents have assisted many businesses with their insurance and risk management needs, and we’re ready to help you.

 

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