If you think your business can skip D&O insurance, think again.
Business owners know that insurance is key. You’ve probably taken time to insure your building, equipment, employees, and even your liability. Does that mean your business is covered against all risks? Not necessarily. If you have a board overseeing your business, you need to seriously consider investing in directors & officers liability insurance.
D&O coverage is designed to protect both your business and the individuals on your board against any costs related to a lawsuit brought against one of your directors or officers. Since over a third of businesses have reported a D&O claim in the last decade, you run a serious risk if you forgo this coverage.
Did you know that your directors and officers can be held personally liable for claims leveraged against them, and your general liability policy won’t be able to pick up the tab? While your general liability coverage is designed to cover property damage and bodily injury claims, your D&O coverage will protect your board if they face a claim for alleged “wrongful acts.”
Your D&O policy won’t just cover the legal fees, either. This type of policy can also cover the settlement itself, ensuring none of your board members ever have their personal finances compromised by their service to your business.
Should you carry directors & officers liability insurance? If you have a board, the answer is probably yes. Talk to your agent to make sure you’re taking the proper steps to protect your board members so they can continue to guide your business!
Directors & officers liability insurance is one of the least understood types of business insurance on the market today. Let the experts tailor your policy to make sure you’re getting the right protection for your business and your board! For your D&O coverage, contact Northstar Insurance in Walnut Creek, California.