Directors & Officers Liability Insurance (D & O)
Are you currently serving on a board of directors for a private company, non-profit organization, or public corporation? Since part of your responsibilities include overseeing the business, you could also be held liable and accountable for your actions, or lack thereof. But, are you protected? Do you have Directors & Officers Liability Insurance? If you answered "No" to any of the questions above, you will want to keep reading...
Know Your Director & Officer Duties
As a director or officer, it is your responsibility to take reasonable steps to ensure that you satisfy all your legal requirements for the business you were hired to represent. You have the duty to be diligent, loyal and obedient, and act in the organization's best interest.
In an imperfect world, mistakes can happen and you could be sued for a number of reasons including:
- An alleged breach of common law such as acting outside of the scope of your authority
- An alleged breach of your fiduciary duty
- An alleged wrongful dismissal of a member
If you're working for a non-profit , public or private company, it’s vital that they have a D & O liability policy in place to help protect you in the event of any legal claim that is filed against you.
If you are considering accepting a directorship, you should inquire to see if the company offers directors & officers liability coverage. If they don't and you decide to still accept an offer from the company, you may want to consult with a lawyer and/or one of the experienced insurance brokers here at Henninger Insurance, prior to signing any sort of contract.
To learn more about D & O coverage, you can contact Henninger Insurance & Financial Services. Get the coverage you need, from brokers you can trust.