A Business Necessity
Directors and Officers Insurance is considered an essential component of a comprehensive corporate liability insurance policy. It also makes a business look more attractive to potential managers and executives, which is why many businesses purchase it themselves. Some countries don’t allow for this, leaving the directors and officers themselves responsible for their own coverage. Whatever the particular national arrangement might be, corporate higher ups do not want to be left without this exceptionally valuable type of insurance.
The Essence and Function of D&O
Directors and Officers Liability Insurance provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company. Think of Directors and Officers Insurance as a management Errors and Omissions policy.
Directors & Officers Liability Insurance can usually include Employment Practices Liability and sometimes Fiduciary Liability. The former involves harassment and discrimination suits, and is where the majority of your exposure will be.
Directors and Officers Insurance is often confused with Errors & Omissions Liability. The two are not synonymous; Errors & Omissions is concerned with performance failures and negligence with respect to your products and services, not the performance and duties of management. Generally it is a good idea to carry both Directors and Officers Liability Insurance and Errors and Omissions Liability Insurance.
Securitas Insurance Partners will help you design and implement a Directors and Officers Policy that fits with your business by identifying your corporate and personal exposures to liability. Among the products where we maintain unique expertise are:
- Errors and Omissions (E&O)
- Directors and Officers Liability (D&O)
- General Partnership Liability (GPL)
- Investment Banking E&O
- Technology E&O
- Cyber Liability
- Tax Insurance
- Representation and Warranty Insurance
- Contingent Liability Insurance