Directors and officers insurance should be an integral part of every type of business’ risk management plan. In addition to protecting a company against considerable liability that could be created by a costly legal claim, it’s imperative that a company shield its individual officers from being faced with personal liability.
Safeguard Your Team Members
A management team and board sit at the operational core of any type of business whether it is a publicly-traded for-profit entity, a private company, or a nonprofit organization that serves a community. The decision-making exercised by these individuals is what drives all of a company’s operations, which is why they could be subject to liability for a variety of different claims including those related to employment practices, cyber liability, or mismanagement.
Get Professional Insight
D&O solution professionals can advise you about the intricacies of how a policy functions. They can help you evaluate your company’s needs based on the risk exposure associated with your company’s activities as well as the standards imposed by your internal governing documents.
Ultimately, individuals should be familiar with their company’s D&O insurance coverage applications so that they’ll understand their personal level of protection. If they’re concerned about deficiencies in protection, they should share their concerns with their team and work towards resolving them.