Directors and officers within a company are open to a slew of liability concerns. Though their responsibilities within a company are responsible for the company running smoothly, risks come along with it. Executives within a company have the opportunity to protect themselves with a Directors & Officers Insurance policy. This policy will help to protect company directors and officers from financial loss claims and liabilities made against the organization.
Coverage From Directors & Officers Insurance
Claims that are made against a company are commonly targeted at the directors and officers within an organization. Disgruntled employees and financial contributors such as stockholders, shareholders, donors and investors are generally among the people that can target directors and officers. Protection against these people can be found within a Directors and Officers Insurance policy. This insurance policy is designed to protect directors and officers, while keeping the company’s interest in mind along the way.
Frequent Types of Claims
No matter the field, all companies are open to claims. While the variety ranges depending on the type of field, there are a few common claims that directors and officers can face. These common claims involve cases such as:
- Workplace discrimination or sexual harassment
- Wrongful termination or breach of employment contract
- Failure of properly completing management duties regarding fiduciary duties & responsibilities
If a lawsuit were to come from a claim, having a D&O Insurance policy in place may greatly benefit any company. This policy will help to cover costs associated with legal counsel or legal fees. Most commonly with claims, either civil or criminal, a Directors and Officers Insurance policy will help to cover costs for both.
Who Should Acquire Directors & Officers Insurance?
There are several areas where a D&O Insurance policy can be applied. This policy has the ability to benefit many types of companies, no matter the industry.
Common industries that can benefit from coverage:
- For-Profit Organizations
- Private Firms
- Not-For-Profit Organizations
- Educational Institutions
- Donors and Investors
The directors and officers within organizations are left susceptible when claims arise. Certain areas where they are left exposed are:
- By Creditors
- Civil Actions by Competitors
- Allegations of Violations of Regulatory State
- By the Government in Alleged Price Fixing and Securities Disclosure Suits
- Shareholder Actions Involving Takeovers, Mergers and Acquisitions
In order to provide a layer of protection for directors and officers, having a Directors and Officers Insurance policy in place is necessary. The protection of these heads within the company allows for a smoother company life, and saves the company from going under.
Insure With Southern States Insurance
Pairing up with an insurance agency that understands the needs of your company is important. At Southern States Insurance, we get to know our clients and assess their needs in an in-depth manner. Directors and Officers Insurance provides the utmost protection to executives, and ultimately the company as a whole. We see insurance not only as a necessary policy, but as an investment to the future of your company. Don’t let your directors or officers stay exposed, protect today with a Directors and Officers Insurance policy.
Protect Your Executives Today
Without the executives within a company, businesses would cease to run smoothly. Having the necessary protections in place to shield them and the company from claims will greatly aid any business. Allow them the opportunity to enhance their positions, while staying safe the entire time. If you’re ready to provide a layer of protection to your directors and officers with an efficient insurance policy, reach out to the informed insurance agents at Southern States Insurance. Our team is ready and willing to work not only for you, but for the betterment of your company. Reach out today at 888.971.6304 or request a quote online.