Directors & Officers Insurance protects the Management Team of a corporation for claims involving Economic Loss, Employment-Related Suits, and other claims that are not covered by the Corporation’s General Liability Policy.
Here are 4 reasons to buy D&O Insurance.
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Directors and Officers can find their personal assets are in jeopardy for decisions made while serving on a board.
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It makes it easier to attract quality directors to the board because of the protection afforded. Some people with excellent qualifications will not serve on board unless they are protected.
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It makes it easier to attract an inside management team because of the protections afforded. This is often a requirement for candidates for senior positions in a corporation.
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Some state laws mandate that a corporation provide indemnification for directors and officers. In the absence of insurance, the corporation would have to foot the bill.
Serving on a board can be a very rewarding opportunity. It also carries with it several inherent risks. Be sure that you and your assets are protected.
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