Directors & Officers Liability
Becoming a director or officer of a corporation puts your personal assets at risk. A director or officer can be sued personally for decisions made on behalf of the company or organization. Typical lawsuits against directors and officers include allegations of:
• Mismanagement of operations or company assets
• Self-dealing and conflicts of interest
• Misrepresentation during the sale of company assets
• Misrepresentation in a private placement prospectus
• Acts beyond authority granted in by-laws
• Violation of certain state and federal laws
• Breach of fiduciary duties
Director and officer liability insurance is insurance designed to protect corporation directors and executives against being sued personally or having to pay personally for corporation actions. It also provides for legal defense costs, which can be substantial, even where there has been no wrongdoing.
In today's litigious society, and particularly in challenging economies, lawsuits are an expected part of business. In fact, most officers and directors face litigation at least once in their careers. If you're prepared with solid D&O protection, you'll be ready to overcome a legal challenge. If you're not, it could mean the end of a promising future.
To get a free quote, either complete our online business insurance quote form or call us at 800-922-8381.