These director and officers liability mistakes are all too common. Don’t fall for them!
We’ve already talked about the different ways that director and officers liability insurance can protect you. By now, you know that if you have a board guiding your company, you need D&O coverage to protect them and your business. You also know that you need the right policy for your specific board, but how do you find it? We’re here to help, so we wanted to highlight these common director and officers liability mistakes so you can avoid them!
- Not reading the fine print on exclusions. The last thing you want is to pay for a D&O policy only to find that when you need it, you’ve triggered an exclusion that prevents your policy from stepping in. You can make sure this doesn’t happen by getting extremely clear on what exclusions your policy contains. Make sure they’re not vaguely worded. Exclusions that are too broad or triggered too easily could leave your business with a significant financial burden.
- Skimping on A-Side coverage. Don’t get D&O coverage without considering A-Side coverage, which directly indemnifies your directors and officers. Without it, your business needs to be ready to defend its board members in court – and cover that expense.
- Not being careful about policy limits. You need just enough coverage to protect your company’s and your board’s assets. If your limits are too high, you’ll end up sinking money into premiums you don’t need to be paying. But if they’re too low, you’ll be left facing a bigger burden than anticipated. Talk to your insurance professional to make sure you have the right policy limits.
Now that you know what not to do, we’ll tell you what you can do to get the right D&O coverage: contact NorthStar Risk Management & Insurance Services, Inc. in Walnut Creek, California. It’s that easy! We know the most frequent director and officers liability mistakes and can help you deftly navigate around them to the right protection at the right price.
