Why Do You Need Directors & Officers Insurance?

Need of Directors & Officers Insurance

They may make accusations of wrongful acts against the Directors, Officers, or employees. These personnel may need to incur defence expenses, damages, compensation and other associated costs.

It can severely affect the growth and performance of the company. The Directors and Officers Liability Insurance protects you against such losses, expenses and claims. It would help if you had the D&O policy to cover the costs for defending and compensating your stakeholders during the following situations:

• The business cannot pay for the stakeholders’ losses due to a lack of funds. Or refuses to pay because it believes it is not in the wrong

• The personnel under scrutiny want to protect themselves against financial demands and allegations

• If any Employment practice liability (EPL) arises from allegations and lawsuits related to:

• Suppose there is physical damage, be it of any kind, for which an individual or an entity sues the high ranking personnel. In that case, the Directors and Officers Insurance cover the defence costs of the insured company.

• Suppose there is a civil fine or penalty. In that case, the D&O policy will cover you as long as those charges are legally insurable.

• If you have a small or a new business, you are more prone to stumble upon unwarranted lawsuits and claims. You can purchase Directors and Officers Liability Insurance to protect your company and yourself against such financial turmoil.

When you start comparing insurance companies to purchase a Directors and Officers Liability Insurance plan, it would be beneficial if you search for the following qualities:

• The insurer’s Expertise in minimising and mitigating risks

• The insurer’s capabilities of advising you on potential risks and sharing with you their safety measures

• The claim settlement process is plain and simple