Directors and Officers Insurance
Ormond Beach, Daytona Beach and Palm Coast, Florida
Directors and officers insurance (D&O) is a good protective measure if your business is incorporate and has a board of directors and corporate officers, or if you serve on a board of directors.
Shareholders could sue you based on assumptions that you committed acts that reduced the corporation's value. Employee practices, allegations of conflicting interests, and providing information to the investing public can also encourage lawsuites.
Why Would We Need This Coverage?
In recent years there has been an increase of lawsuits being filed against executive boards. D&O coverage should be considered a necessity for corporate entities; it supplements the protection provided by general liability policies.
Criminal acts are not covered by D&O insurance but the cost of providing a legal defense until criminality is determined may be covered. At one time it was common practice for a director facing a lawsuit to have related expenses handled by a corporation's operating funds but times have changed, especially for operations facing bankruptcy or those that cease operation.
Consult with your insurance agent to make sure the board is properly covered by D&O because fraud or errors caused by an individual officer or director could eliminate coverage for all other directors and officers! So keep in mind the importance of the board overseeing the application process and ensuring that the provided information is accurate.
Contact Mitchell Noel Insurance today for a free directors and officers insurance quote.