Directors & Officers Liability Insurance

7 Reasons for Directors & Officers Insurance.

1) No coverage.

Umbrella policies often do not cover claims involving directors & officers.

2) Investors want it.

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 and 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 Errors.

Small to medium sized companies may not have the staff or resources to review and maintain proper legal compliance, which makes them susceptibly to legal compliance lawsuits from government agencies.

7) Unfounded Claims.

It does not 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.