Directors & Officers Insurance provides protection to 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.
Directors and Officers can find their personal assets are in jeopardy for decisions made while serving on a board.
Makes it easier to attract quality directors to the board because of the protection afforded. Some people with excellent qualifications will not serve on a board unless they are protected.
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.
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 a number of inherent risks. Be sure that you and your assets are protected.
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