Directors and Officers Liability Insurance
Directors and Officers Liability Insurance is a type of liability insurance that covers your directors and officers. In other words, It covers both the legal costs and any settlement or judgments issued in a claim. Moreover, D&O Liability Insurance covers privately held firms, for-profit and not-for-profit organizations, and educational institutions. Different claims have turned out to be increasingly common. In which executives and officials themselves could be held personally liable. Hence, to attract and retain qualified administrators and board individuals, it’s significant to have Directors and Officers Liability insurance in your companies.
Why does your company need directors and officers insurance?
Directors and officers are legally responsible and bound by duty towards stakeholders like shareholders, employees, creditors, customers, competitors, and government or regulatory bodies. It may take years to build your company officers, but losing them may take weeks or even a day. In these increasingly litigious times, your company’s officers and board of directors may be targets of financially crippling lawsuits.