How Companies Benefit From Directors and Officers Liability Insurance

When companies commit wrongful acts, directors and officers may be held personally responsible. With directors and officers liability insurance, these professionals can safeguard their personal assets. The coverage provides comprehensive financial protection.

Who Needs Liability Insurance

Both commercial and nonprofit companies benefit from having liability insurance. Legal proceedings are costly matters that result in high attorney fees, financial damages, and legal expenses. Lawsuits may cost directors and officers thousands of dollars. Without the help of insurance, these professionals could sustain significant financial damage.

Why Acquire Liability Insurance

Claims filed against directors and officers surface for a number of reasons, including:

Directors and officers hold a significant influence over company actions, and they closely interact with people on all sides of the business. Therefore, it is unsurprising that claims originate from a variety of sources, from employees to clients to stockholders. Directors and officers operate in a high-risk environment; they need all the protection they can get.

Be Prepared By Acquring Liability Insurance

Directors and officers liability insurance supplies financial assistance during civil and criminal proceedings. Companies that have yet to acquire the insurance should do so immediately. Preparedness trumps vulnerability. Legal claims surface at unexpected times, and they lead to financial damage when not defended against. By securing liability insurance, companies prevent their directors and officers from enduring personal financial injury.

This post was written by , posted on May 28, 2015 Thursday at 8:15 pm

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