Directors & Officers Liability Insurance

Directors and officers (D&O) liability insurance is designed to protect against lawsuits brought by shareholders and third parties. It not only safeguards company assets, but the personal properties of directors and officers.

When companies need to cover the defense costs associated with investigations and lawsuits or be reimbursed for losses, D&O coverage is invaluable. In instances when defending corporate lawsuits exceeds the liquid capital of a private company, D&O coverage is an absolute necessity. Lawsuits can be brought by anyone, including shareholders, competitors, previously acquired businesses and vendors. Look to our team to help protect the interests of your clients.

Why D&O Insurance is Important

  • Directors have legal responsibilities, including duty of care, loyalty and obedience.
  • Corporate indemnification may not be available.
  • The personal assets of individual board members are at stake in lawsuits.
  • Outside directors often will not serve on a board without D&O coverage.
  • Contemporary corporate scandals have heightened regulation on accounting practices.
  • The Internal Revenue Service has increased its corporate scrutiny through audits.
  • Bad business decisions and practices are visible for small companies.
  • To protect against bankruptcy exposure.
  • Judgments against an organization can have devastating impacts on operating budgets.

Common D&O Coverage Topics:

1: Ask about estate planning in the event of death or divorce.

2: Share real-world claim examples.

3: Outline the cost benefits of insurance versus the expense of a lengthy court case.

4: Discuss potential lawsuits and how the process would be paid for without insurance.

5: Determine the right combination of price and coverage.

6: Provide a number of different and reasonable coverage options.

helpful information: