Why Directors' & Officers' Liability Insurance?

It is becoming more common for directors to require that an organiztion purchase D&O coverage before they will agree to serve on the board. Given the fact that litigation expenses can easily amount to millions of dollars it is easy to understant why they would want protection. Remember, it doesn't matter if any wrong doing  actually occured. The expenses incurred amounting a defense can be enormous.

A D&O claim would occur when an action is brought against a director or officer based upon alleged wrongful acts arising from the execution of their day-to-day duties or management functions. D&O Liability insurance can protect personal assets from catastrophic financial loss in the event of such a claim. A D&O policy can also provide coverage for the organization as well.

The personal assets of you directors and officers are at risk with every decision they make, every day. If they are sued for any wrongdoing, the chances are that your company will be named in the action as well.
Directors and Officers insurance will not only cover defense costs, settlements and judgments associated with these claims, but also protects the personal assets of a director or officer's spouse or domestic partner.

Even if you do not have shareholders you still are at risk. Many claims originate from other sources such as vendors, customers, regulators and employees. Defending a lawsuit could be financially devastating to your company.

Call Stanton Insurance today and speak with one of our commercial lines producers if you wish to learn more about D&O Insurance.

781-893-3200