Directors’ and officers’ liability insurance

D&O liability insurance

On-board cover

Decisions, decisions. Company directors make tough ones every day.

But what happens when someone doesn’t agree with a decision you made?

They can sue, that’s what.

Sure, that’s no problem if your pockets are deep. It’s really bad news if they’re not.

Because lawsuits mean big bucks. And the downside of being on the board?

The bucks stop with you.

• Why do I need directors’ and officers’ insurance?

  Because corporate organizations are protected by other kinds of liability insurance. Individuals, are not.

  And anyone can sue you for wrongdoing. It could be an investor, claiming you mismanaged their funds. Or an ex-employee with a grudge. It could even be a competitor.

  Being on the board of directors shouldn’t mean risking your home, or your life savings.

  Whether you run a public, private, or non-profit organization, directors’ and officers’ insurance (D&O) protects your personal assets. Even if the claim’s groundless.

  If you’re personally sued, it can cover your defense costs, plus compensation, if you’re liable.

• What does D&O insurance cover?

  What’s covered can vary from policy to policy.

  But D&O generally protects three things: you, your business, and your personal assets, from claims of wrongdoing.

  Wrongdoing claims include:

  • Lack of, or poor, governance
  • Mismanagement of company funds
  • Underperformance (of stock, or the company)
  • Breach of duty, care, or company law
  • Failing to comply with rules and regulations
  • Making decisions without the right authority
  • Poor employment practices

  What D&O doesn’t cover is instances when the law’s been broken. Like a director deliberately committing fraud.

  Or, claims of wrongdoing made against the company as a whole.

• What other kinds of insurance do I need?

  • General liability insurance – is for when you’re out and about on business or have visitors to your office. It protects your company from the cost of claims of physical damage to property and people, plus personal injury (slander/libel).
  • Errors and omissions insurance – if you offer a professional service, this is a must-have. It protects your firm from the cost of negligence claims. And your reputation from the damage they can do.
  • Business personal property insurance – covers the moveable things in your office - from your furniture to your potted plants. It also provides protection for your mobile devices (like your cell and laptop) when you’re out and about on business.
  • Workers’ compensation insurance – even if you only have one employee, most states require you to have this. But it’s good to have anyway. It protects your business from the cost of workplace injury claims. Which can financially crippling.
  • Cyber liability insurance – It’s not the attack itself that’ll shut down your business, it’s the recovery costs. Cyber insurance can’t stop you being hacked. But it can take care of these costs, so your business survives.

  We can build an insurance package to suit your particular business needs. And it’ll just take a few minutes.

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