Financial protection for a business should cover more than just the business’s property. It should also cover the personal assets of those involved in the business. Although you would hope that your business and your chief operating officers would never be sued, it only takes one instance to set you and your company back financially.
What Is Directors & Officers Liability Insurance?
Directors & officers insurance is a type of liability product designed to protect the chief officers of a company from financial ruin if they are sued for their business dealings. While this is a business insurance product, it protects these individuals’ personal assets, including bank accounts as well as other non-liquid assets, while also protecting the company from financial loss if these individuals are sued.
Many individuals wanting to accept director or officer roles in a new company will want to be assured that they are backed by directors & officers insurance before they accept a new role. Without this financial security, they could find themselves and their families financially ruined by a single lawsuit. In addition, businesses seeking investor funding will most likely also need to have this insurance in place to protect their investors.
What Could Directors & Officers Insurance Cover?
A high-quality directors & officers insurance policy will cover numerous legal and financial concerns, including the following:
- Legal fees for fighting lawsuits
- Lawsuits regarding the misuse of business assets
- Lawsuits regarding intellectual property theft
- Lawsuits regarding poor or incomplete company policies
While directors & officers insurance can cover quite a lot, it does not cover lawsuits regarding clearly criminal or illegal activities, such as intentional fraud.
Get a Directors and Officers Insurance Quote Today
Because this type of insurance is highly specified and the policy must be written up specifically for your company to ensure correct coverage, it is vital that you and your company work with an insurance specialist who is highly knowledgeable in business policies. However, finding a wise counselor does not have to be hard when you work with Truliant Insurance Services. They will guide you through costs for premiums and deductibles and will help you choose the best policy to cover the chief officers in your company. Contact them today to learn more by calling 1-844-267-1698.