Directors and Officers insurance, referred to as D&O insurance in short, provides liability coverage for business managers to protect them from claims made from decisions and actions they are a part of as part of their role with the company. D&O insurance protects individuals, their spouses and their personal assets from losses if claims are made against them by employees, competitors, stakeholders, customers and vendors for alleged unjust acts while they are in a management position over a business or organization.
If a person is found guilty of the following acts, a D&O policy will not cover defense costs or settlements:
When you bundle D&O Insurance with Employment Practices Liability Insurance, it can all fall under a management liability policy. This can end up being a more affordable option for your business and will protect you against claims of discrimination and wrongful termination. This business insurance covers legal fees and other defense costs.
What companies need D&O coverage?
Whether the claims are true or not, your business needs to defend itself at the expense of the company. Having a D&O insurance policy in place will help in limiting your companies’ exposure and reduce the financial risk brought on by these types of suits.