Directors and officers (D&O) insurance is a type of insurance that protects directors and officers of a company from personal liability in the event of a lawsuit. It is essential for any business leader, as it can help to cover the costs of defending a lawsuit and any damages that may be awarded.
Protect Yourself from Personal Liability
Here are just a few of the reasons why you need to purchase directors & officers insurance:
You can be sued personally
Even if your company has liability insurance, you can still be sued personally as a director or officer. D&O insurance can help to protect your personal assets from being seized to satisfy a judgment.
Lawsuits can be expensive
Even if you are ultimately successful in defending a lawsuit, the cost of defending yourself can be significant. D&O insurance can help to cover these costs.
Lawsuits can damage your reputation
Even if you are not found liable in a lawsuit, the process of being sued can damage your reputation. D&O insurance can help to protect your reputation by providing you with the resources you need to defend yourself against a lawsuit.
Here are a few examples of directors & officers insurance claims:
A shareholder sued the directors of a company for breach of fiduciary duty, alleging that the directors had made decisions that were not in the best interests of the company. The directors' D&O insurance policy helped to cover the costs of defending the lawsuit and the damages that were awarded to the shareholder.
A customer sued the directors of a company for negligence, alleging that the company's products had caused them harm. The directors' D&O insurance policy helped to cover the costs of defending the lawsuit and the damages that were awarded to the customer.
A government agency investigated a company for alleged violations of environmental regulations. The directors of the company were subpoenaed to testify in the investigation. The directors' D&O insurance policy helped to cover the costs of hiring lawyers to represent them in the investigation
These are just a few examples of the many ways that directors & officers insurance can help to protect businesses and their clients. Talk to JV Hutton to make sure that you have the right cover in place.
GET EXPERT ADVICE
Directors & officers face complex exposures and liabilities, which demand a high level of specialist knowledge and expertise. JV Hutton can help and advise.
Get in touch today!