Directors & Officers (D&O) Liability insurance is designed to protect the people who serve as directors or officers of a company from personal losses if they are sued by the organization’s employees, vendors, customers or other parties. The coverage, which usually protects the company as well, covers legal fees, settlements, and other costs. associated with wrongful act allegations and lawsuits.
Our partner, Travelers Insurance, recommends that any business, including private companies, public companies, and financial institutions with a board of directors should have Directors & Officers liability insurance coverage. Claims against companies and their directors and officers are increasingly common.
If your business works with vendors or government entities, or has employees or customers, you may have exposure that could make your organization and its executives vulnerable to costly legal action.
Directors and Officers can be sued for a variety of reasons related to their company roles, including:
- Breach of fiduciary duty resulting in financial losses or bankruptcy
- 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
- Illegal acts or illegal profits are generally not covered under D&O insurance.
Directors & Officers insurance is an important aspect of a corporate risk management strategy and can help your company attract and retain qualified executives and board members.
Please contact us or call us at 864-288-9513 to learn more about D&O liability insurance.
