Directors Insurance

Clients, Employees, and New Jersey Contractors Insurance

There are many ways to protect your construction business and having proper new jersey contractors insurance is just one of them. One of the first areas that need considerable thought is your hiring practices. You’ll want to hire a team of employees that is dependable and responsible. Having good people in place working for you is one of the keys to success. Make sure that you not only hire competent workers, but also ensure that you keep them happy and continue to retain good workers for all of your company’s projects.

Make the client your number one priority

Always put the client first. This is accomplished by having a good line of communication. While performing the work, make sure to stay in communication with the client along with others you’ll be working with. Not only will this allow for the project to run smoother, it may also lead to being awarded future projects.

You’re going to be judged first and foremost by the service you provide. The best way to increase customer referrals is by offering quality service to all of your customers, big and small. Satisfied clients will offer referrals that will grow your client base and increase profitability. It is a prudent practice to make sure that you are not only reaching out to potential new clients but also checking in on previous ones. Make sure that they know how to contact you in the event that there are any issues with the work you’ve performed.

Also, remember that the world is constantly changing. It’s important to stay up to date with technological advances within the industry. Being familiar with any new technology can help increase production as well as allow for better networking.

Having all the necessary New Jersey contractors insurance coverage in place will give you some much needed security. Growing your business requires that you take certain precautions to help ensure the security of yourself, your clients, and your employees, including visitors to work sites and even unexpected guests or intruders. You need a policy that will protect you and the business against injury and property loss.

Directors Insurance and the Exposures They Face

Directors and Officers insurance (D&O) protects individual corporate directors and officers in the event they are personally sued by investors, employees, vendors, competitors, and customers, among other parties. Directors take on a huge responsibility and are prone to being named in lawsuits for a variety of reasons related to their position in the company. Directors insurance protects them by covering legal fees, settlements, and other costs; in addition, the coverage sometimes can extend to protect the company if it is named in a suit as well.

In many instances, when a company appoints directors or hires new officers those hired will require D&O coverage as a condition of serving (or employment) because they don’t want to put their personal assets at stake. In addition, outside investors (such as venture capitalists or other financiers) will also require D&O policies before providing funding to a business, mainly because they see having this coverage in place as a way to protect their own investment.

Reasons why directors are named in a lawsuit

Directors, as well as officers, are sued for a variety of reasons connected with their company positions. This can result in severe cases of stress and anxiety, which certainly is not good for any business. Among the reasons for bringing suit against a director:

  • Misuse of company funds
  • Misrepresentation of company assets
  • Fraud
  • Failure to comply with workplace laws, and
  • Lack of corporate governance, among other issues

It’s important to note that a business doesn’t have to have shareholders in order for its directors and/or officers to be personally sued. Any company or organization having relationships with vendors or customers, or intending to seek venture capital funding or other financial investors, should realize that these are the types of external exposures for which small business executives can be held accountable. Any business, large or small, will usually have directors who are likely to become targeted by litigants over their management of the company’s affairs.

While some small business executives believe that their general liability or umbrella business insurance policies will cover claims involving directors and officers, this is not the case. Those general liability or umbrella policies don’t respond to management liability lawsuits, which is why directors insurance is so often vital to have in place.