In a position that helps in guiding the direction and success of a company, it can be said executive-level management is held to a higher level of responsibility. Our Directors & Officers Insurance is designed to provide you secure financial protection for in the event you are ever brought into litigation based on your performance within the company.
Directors & Officers Insurance is similar to – but also very distinguishable from that of an Errors & Emissions policy for professional consultants which is more based on negligence and failures, while this policy relates to the duties and performance of management. A Directors & Officers insurance policy may also include features from Employment Practices Liability such as harassment and discrimination suits, which represents over 50% of claims against upper level management.
Such a policy is often required by a board of directors and/or investors or venture capitalists. Especially if an IPO is planned, Directors & Officers insurance can be a must if ever investor claims arise regarding stocks not performing as expected.
In the role of a director or officer, you can be held personally responsible for acts of the company. It’s always better to protect yourself than risk having your personal assets be at stake.