If you serve as the director or officer of a company, there is a good chance you could face legal claims from someone alleging wrongful acts in your management of the company. Legal claims of any kind can be devastating and can quickly drain your bank account through long legal battles and expensive settlements. It is vital that you properly protect yourself in every way you can. This is where d and o insurance comes in.
What Is D&O Insurance?
D&O insurance or directors and officers liability insurance is a type of insurance coverage that protects the assets of corporate directors and officers in the event they face legal claims regarding actual or alleged wrongful acts in their managing of a company. These legal claims can come from a variety of people including company employees, vendors, investors, competitors, customers, and a number of other parties. D&O insurance covers things associated with claims like legal fees, settlements, and other costs.
Does Your Business Need D&O Insurance?
Many people are under the notion that D&O claims are something that only affects public companies. Unfortunately, this is not the case. D&O claims can and are often made against private and non-profit businesses, in addition to public companies. To sum it up, any business with an advisory committee or corporate board should absolutely consider investing in D&O insurance.
Corporate directors and officers are constantly at risk of having legal claims made against them. D&O insurance can go a long way towards mitigating a lot of that risk.