Directors And Officers Insurance
May 6, 2017
Directors Officers Insurance:
Directors and officers insurance (D&O) provides liability coverage for directors and officers of organizations including businesses, non-profit and government entities. It provides a level of protection for individuals who serve in fiduciary roles as directors or officers allowing organizations to attract talented people to serve as directors or officers without incurring the risk of personal financial loss.
When considering whether or not to serve on a board it’s recommended that people make sure that D&O coverage is in place. As a director or an officer of an organization you are responsible for making decisions that are in the best interests of the organization and with that responsibility comes the risk of negligence. Examples may include liable or slander claims that can arise when condominium board members speak in anger or board members of a local yacht club facing legal action if members deem that funds have been spent improperly.
If you’re considering serving on the board of an organization make sure that they have a D&O policy in place. If you’re already involved with one and are looking to provide protection for your existing members and attract talented people it’s a good idea to purchase a D&O policy.