Many businesses underestimate the amount of liability insurance that they should hold, especially if they have very few directors or officers in their company. However, it is important to note that your business could be sued at any time, and your high-ranking officers can easily become the targets of various lawsuits. Whether your company officers and directors are actually at fault or not, you could be stuck with hefty legal fines as the result of a lawsuit filed against you by a customer, vendor, or any other individual that has worked with your company. If you want to keep yourself well protected financially, here are some things you should know about directors liability insurance.
What D&O Insurance Covers
Directors and Officers Liability insurance provides protection against your company and officers in case someone claims that your company or officers have made a poor decision that affected them negatively. Directors and officers are required to make tough decisions every day, and they should not have to worry about facing the full cost of lawsuits brought against them as a result of those decisions.
Protect Your Company Today
D&O coverage is ideal for private, non-profit and publicly-held companies that want to give their high-ranking employees more comfort when making important company-related decisions. To make sure your company is not forced to handle legal costs completely on its own, make sure you have directors liability insurance today.