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.
Directors and Officers can find their personal assets are in jeopardy for decisions made while serving on a board.
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.
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.
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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