Directors and officers liability insurance proves valuable when directors and officers are sued for alleged wrongful acts. Policies provide these professionals with comprehensive financial protection. When faced with costly claims, directors and officers rely on liability insurance to assist them in the payment of legal fees.
The Importance of D&O Liability Insurance
Most liability claims of this nature originate from employees and clients. They are generated when companies make errors, omissions, or misleading statements. Since directors and officers are held primarily responsible for any wrongful company acts, it is important for them to have coverage to keep their financial assets protected.
D&O liability insurance covers legal fees that accumulate over the course of civil, criminal, or administrative proceedings. Policies typically cover defense costs, financial damages, and settlements. Some legal fees (wages, fines, taxes) are not covered by the insurance. Nevertheless, directors and officers liability insurance functions as a great source of financial protection. Lawsuits are incredibly costly matters, and business professionals may suffer financially if they are without the proper insurance.
Protect Your Financial Assets
Legal claims can surface at any time, and it is imperative that directors and officers are protected at all times. Liability insurance is a great form of financial security. By having this type of insurance, directors and officers prevent their financial assets from sustaining significant damage.