In general, commercial insurance protects your business from losses. Cyber attacks, accidents, weather events, or improper actions of employees can all cause losses. One area of business coverage often overlooked is directors and officers insurance.
What is Directors and Officers Insurance?
Directors and officers insurance, or D&O insurance, is added liability coverage that protects your company in the event of wrongdoing by a manager or when lawsuits target business leaders.
It is not uncommon for businesses to face legal battles and litigation, and often business leaders are forced to take on the brunt of the issue. D&O insurance provides an extra layer of protection for management-level employees.
Why Your Business May Need D&O Insurance
When faced with a disgruntled investor or employee, your business may need directors and officers insurance. Unhappy investors, customers, or employees may bring legal action directly against management, which can leave their personal assets exposed.
For example, an employee may allege that a manager acted in a discriminatory fashion and may choose to file a lawsuit against the company and the manager involved. This type of policy protects corporate leaders from legal costs associated with litigation, losses due to legal actions, and extends to directors’ and officers’ personal property.
If your business ever faces a lawsuit, D&O insurance will ensure minimal losses for your company and its leaders. Please contact Steve Longenecker (303-808-9351, x2) at Mountain Insurance: Longmont to discuss your business insurance coverage options in Longmont, CO, and our neighboring communities.
We give out $25 gift cards for referrals that become our insurance clients.
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