With great power, comes great responsibility (and liability!). This is especially true for individuals who hold directors and c-level positions, which are often the primary targets for claims brought against their company. Fortunately, companies are able to protect themselves and their executives from these potential claims by acquiring directors & officers insurance.
What Kind Of Claims Are Covered By D&O Insurance?
Holding a leadership position within a company means those individuals are responsible for making key decisions that often carry a plethora of liabilities. The increased amount of exposure to the liabilities also increases the volume of claims that can be brought against them. Among these potential claims, most claims that arise often involve the following:
- Fiduciary duty mismanagement
- Failure to adhere to state or federal laws and/or regulations
- Shareholder/stock suits
- Unlawful employment practices
- Unethical HR management
What Else Does D&O Insurance Provide Companies?
Aside from protecting companies and their leaders against claims and lawsuits, directors & officers insurance also provide companies additional value to prospective employees and shareholders. Companies who acquire d&o insurance also increase the retention rate of their current executives as well as a bargaining tool when acquiring prospective employees seeking leadership positions.
In addition to adding value to their employment process, companies will also find that venture capitalists and shareholders will increase their investments, knowing that their investments are secured by directors & officers insurance.
Acquire A Directors & Officers Insurance Policy Today!
Among the list of liabilities and potential claims that could arise, it is imperative that your company acquires a directors & officers insurance policy. Speak to our insurance consultants for more information by contacting us online or by phone at 972.737.7875.