What Is Directors and Officers Liability Insurance?
Directors & Officers Liability Insurance provides financial protection for the directors and officers of a company in the event they are sued. Lawsuits will generally be brought in response to a failure of directors or officers to perform their duties as they relate to the company or a non-profit board.
Directors & Officers Liability Insurance may include Employment Practices Liability and Fiduciary Liability. Employment Practices Liability is perhaps the most important of the two since it helps protect you from harassment and discrimination suits.
Why Do I Need It?
First, you need Directors & Officers Insurance due to the fact that claims from stockbrokers, employees, and clients will be made against the company as well as against the directors of the company. Since a director can be held personally responsible for acts of the company, most directors and officers will demand to be protected rather than put their personal assets at risk.
Investors, especially Venture Capitalists, will usually require that you show evidence of Directors & Officers Liability Insurance as part of the conditions of funding your company.
Also having employees opens management up to employment practices lawsuits – which usually can be covered under Directors & Officers Insurance.
How We Help:
We can help you save money on this type of insurance by bundling your Directors & Officers Insurance with your regular business insurance policies. Insurance companies want your business, so to sweeten the offer, they offer bundling discounts with multiple business policies. As independent agents, we are experts and specialists in this field. We know this niche inside and out and can help advise you about the insurance choices similar businesses have made. And we do all the hard parts for you. You fill out an application and answer a few questions and we’ll do all the math and shopping. That way you can focus on what’s important: running your organization.!
