Withers Insurance Services provides valuable corporate insurance options for a wide range of companies and organizations. Any organization or business with a board of directors needs to carry directors and officers (D&O) liability insurance. This coverage is also important for publicly traded companies and can be beneficial to privately owned businesses as well.
Directors and officers insurance is a corporate liability policy that provides protection beyond general liability. This coverage can be thought of as a type of professional liability or errors and omissions insurance for executive officers, boards, and administrators. It protects the insured company or organization in the event of unethical actions, damaging misstatements, exclusions, or negligence on the part of a board member or executive.
D&O liability is one of the most important commercial liability policies for both nonprofit and for-profit entities. Many individuals will not serve on a board for a nonprofit organization if the nonprofit doesn’t carry sufficient D&O insurance. Likewise, investors will often refuse to buy stock in publically traded companies that do not carry this coverage.
Directors and officers liability insurance provides protection for investors, board members, officers and the company that holds the policy. In the event that an uninsured company or nonprofit organization is damaged by the actions or statements of a director or officer, the results can be crippling. The organization may be held responsible and required to pay damages. Some uninsured organizations require board members to provide their own liability coverage to defray costs, but this can cause additional hassles.
Learn more today by filling out our simple online information form. The risk management team at Withers Insurance will be happy to assist you in finding the right D&O coverage for your business or organization. With our help, you’ll have less to worry about.