Business owners face a lot of risks. With this, acquiring various insurance plans is necessary.
If you own a business and have high-ranking business officers, you might want to consider purchasing directors and officers Insurance.
What is Directors and Officers Insurance?
Directors and officers insurance, or D&O insurance, is the kind of insurance policy that protects a business’s officers, directors, and other high-ranking officials. D&O provides coverage for legal action from other individuals such as investors, competitors, and customers.
Typically, lawsuits are based on negligence or committing “wrongful acts” like misinformation and knowingly tolerating harassment. These lawsuits usually lead to bankruptcy because of the many expenses a business can incur, like investigation and legal fees.
With this, purchasing D&O insurance is quite necessary.
Do You Need D&O Insurance?
Although many companies acquire D&O insurance policies, having one is not necessary. However, lawsuits covered by D&O have increased through the years, especially those against senior executives and CEOs. With this, it’s best to invest in a D&O plan if your business has a corporate board.
Here are some of the factors that make a D&O insurance policy necessary for a business.
As mentioned, acquiring a D&O plan isn’t required. However, given the many risks officers and businesses face, it’s better to be prepared. Moreover, protecting yourself from a D&O policy will help you minimize your expenses for when you’ll need it.
At Howe Insurance Brokerage, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (435) 674-8771 or Click Here to request a free quote.