[vc_row el_position=”first last”] [vc_column width=”2/3″] [vc_row_inner el_position=”first last”] [vc_column_inner] [vc_column_text el_position=”first last”]

directors & officers insuranceDirectors and officers insurance provides liability coverage for the directors and officers of a business if they are sued in conjunction with the performance of their duties as they relate to the company. D&O insurance is a recommended coverage for businesses as soon as a board of directors is assembled.

Directors & officers insurance can usually include employment practices liability and oftentimes fiduciary liability. Fiduciary involves harassment and discrimination suits, and is where the majority of your exposure will be.

D&O insurance is necessary because:

  • Claims from stockholders, employees, and clients will be made against the company and against the directors of the company. Since a director can be held personally responsible for acts of the company, most directors and officers will demand to be protected rather than put their personal assets at stake.
  • Investors and members of your board of directors will not be willing to risk their personal assets to serve as a corporate director or officer, no matter how heartfelt their belief in your company.
  • Employment practices lawsuits constitute the single largest area of claim activity under directors and officers policies. Over 50% of D&O claims are employment practices-related.

Be careful not to confuse D&O insurance with errors and omissions liability. E&O is concerned with performance failures and negligence with respect to your products and services — not the performance and duties of management.

Interested in a free quote? Contact Metropolitan Risk today for a thorough review of your Directors & officers insurance needs; and start protecting your business today!

 

[/vc_column_text] [/vc_column_inner] [/vc_row_inner] [/vc_column] [vc_column width=”1/3″] [vc_widget_sidebar sidebar_id=”sidebar-7″ el_position=”first”] [vc_widget_sidebar sidebar_id=”sidebar-3″ el_position=”last”] [/vc_column] [/vc_row]