Corporate Directors and Officers Insurance (D&O) Protects Corporate Directors and Officers from Personal Liability.
The majority of business insurance policies are meant to protect a company's assets and earnings. The goal of Directors and Executives Insurance, often known as D&O Insurance, is to protect and defend the personal assets and income of boards of directors, employees and corporate officers.
A startup company does not require this type of insurance protection, but as your company expands and becomes more complex, as well as board members become wealthier, the necessity for D&O Insurance grows.
D&O Insurance isn't just for corporate board members; serving as a director on a co-op, condo, or non-profit board might expose you to personal liability for accidentally failing to declare conflicts of interest, breach of duty, or commingling personal and business funds and assets.
A D&O Insurance policy generally does not cover a lawsuit brought against a board of directors or an individual officer, and D&O Insurance coverage vary greatly. D&O insurance frequently excludes claims involving employment practices (hiring, firing, and promotion). An Employment Practices Liability (EPL) coverage may fill the gap where a D&O policy excludes employment-related claims.
A large percentage of claims brought against boards and individual members are baseless and are dismissed. Even if a case is dismissed, legal defense costs are usually incurred, and they can be substantial. One of the most important aspects of a D&O Insurance policy is coverage for legal defense costs.
Innovative Insurance Services understands the value of good employees. We know that your day-to-day operations depend on their hard work, expertise, and dedication, and if you supply them with quality benefits and plans, they can work with the peace of mind assurance that they are properly protected. Innovative Insurance Services LLC provides insurance to businesses in Shakopee, Savage, Prior Lake, Bloomington, Eden Prairie, Burnsville, and surrounding areas.