Directors & Officers insurance is taken to offer adequate financial security to directors and officers of a company in case they have to face any lawsuit filed by shareholders, creditors, competitors, and consumers for any omission, fraud, cheat, and other event in concern with the running of day-to-day affair of a company. This particular type of insurance has been introduced in the business world to safeguard the interests and rights of directors and officers of a company in case they are accused of errors and omissions in their normal course of working.
Better known as D&O insurance, this type of insurance protects directors and officers from any kind of unforeseen financial liability. It will also include other insurance like Employment Practices Liability and at extent Fiduciary Liability.
Importance of D & O insurance for Private Companies
In case of a private company, directors and officers are held personally liable for the decisions and activity they undertake in daily course of action. It can be better understood as if a private company is not covered under the directors & officers insurance, it may has to face many kinds of challenges and harsh actions. If you own a private company, make sure you get the best D & O insurance coverage.
Usually, private companies and firms underestimate their liabilities towards the directors and officers and their way of working. Working for the private cause does not necessarily mean that the decisions of your board are immune from public scrutiny. In addition, private companies need strong protective shield because of their large shareholder base; a large number of creditors, competitors, government bodies and employees. In fact majority of D&O claims include employee related litigation and lawsuits in today’s growing world.
Internet is the Finest Source
The Internet his the constant source of getting adequate information and insurance protection against the directors and officers of a company. Find the best coverage for your people and stay happy for long.
