Everyone in your business, from entry-level hires to tenured CEOs and corporate boards deserve errors & omissions (E&O) coverage. It comes in handy to insure them in case of professional mistakes. Yet, a standard E&O policy might not fully protect the operation's principals. They might enjoy targeted protection offered by directors & officers (D&O) insurance. Why is this coverage a benefit to both company leaders and the company as a whole?
With D&O insurance, you’ll protect principals from personal threats that might result if they make mistakes. Don’t hesitate to enroll in coverage today.
D&O Insurance in a Nutshell
D&O insurance is essentially a more specific form of errors & omissions coverage. It extends to ranking principals in your business. CEOs, COOs, finance officers and board members often fall into this category. Coverage can help them in case they face personal allegations of mistakes originating from third parties.
Your clients could allege that a principal's actions caused them a financial loss. They therefore could sue the individual in addition to the business. That principal’s personal assets might come under threat during the suit. This is a perfect example of when a D&O policy might come into play. It’s there to give more protection to those who usually face the most scrutiny.
Benefits to the Individual
In most cases, you can easily see why this coverage will benefit your company principals. They will have the assurance that they have protection to back up their decisions. They won’t have to worry unduly that they will not be able to recover from a challenge from other parties. D&O coverage is so important to directors, in fact, that many prospective hires will refuse to join the company if the business does not have a policy.
Benefits to the Business
D&O insurance is a critical piece of coverage not only for individuals, but also for the business itself.
From a practical standpoint, coverage will help safeguard the business if its mistakes receive challenges from the outside. That way, the company can better weather these storms. You are more likely to come out the other side without significant losses to your long-term goals.
Also, remember that D&O coverage is often a condition that helps prospective talent decide to join your operation. It is for this reason that investing in coverage might help you with brand development. You will likely be better able to better attract and retain talent. Your prospects for more stable and innovative development might increase as a result.
Don’t hesitate to talk to your insurer about the benefits of D&O coverage today at 877-396-2300.
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