Insurance for Claims of Wrongful Acts

directors and officers insurance v professional indemnity

A business, no matter the size, works with clients to provide services, products, etc. By running a business, however, this can open you up to problems involving legal claims, attorney fees and more. Even if your employees are properly trained and everything is working as well as possible, it’s impossible to avoid accidents, mistakes or just poor luck. Especially in recent years, people are much more likely to take action when they see any chance of negligence or misaction. That’s why having insurance to protect your business is vital, but you may find yourself caught between directors and officers insurance v professional indemnity.

What Type of Insurance Do You Need?

What kind of insurance would protect you best? There are two main types of policies that often cover these types of situations, but whether you need one or both depends on what kind of coverage you need. By comparing directors and officers insurance v professional indemnity, you can weigh the pros and cons of both and figure out what is best suited for your business.

Directors and Officers Insurance or D&O specifically cover the directors and officers of your company, giving specific coverage for when claims are personally made against them.

Professional Indemnity, also known as Errors and Omissions or E&O is policy coverage for all employee mistakes as a claim against your company, although personal claims are often not covered.