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Does My Privately Held Business Need Directors and Officers Liability Insurance?
Posted by Partners Risk Services on
Directors and Officers (D&O) Insurance is an effective solution for the risks facing private organizations. Our products and services are designed to fit the needs of your business. Our insurance policy protects directors, officers, employees, volunteers, committee members, trustees, and the organization itself.
Why Do We Need Directors and Officers Liability Insurance?
Over 50% of privately held firms have had D&O related claims
20% have had an employment related claim
The average defense cost for a D&O claim is around $75,000
What Does Directors and Officers Insurance Protect?
It protects the company’s assets against lawsuits brought by shareholders and third parties.
It protects the personal assets of a company’s directors and officers.
It helps the company monitor and provide defense costs associated with responding to lawsuits and investigations.
Proactive Risk Management
Consider Directors and Officer Liability Insurance as part of your risk management program.
Determine if there are any conflicts of interests among the directors. Directors and officers should avoid situations where their personal interests may, or may appear to, be in conflict with the best interest of the company.
Directors need to be educated in the following: Antitrust, political contributions, harassment, and confidentiality.
There should be regular scheduled board meetings, including proper notice. Meeting minutes should be retained forever.
Utilize a qualified attorney, insurance agent, and accountant to help you manage your risk.
Consider Employment Practices Liability Insurance. Employment-related claims represent a high-visibility, fast-growing area of D&O liability.
Establish internal controls for accounting and financial reporting.
Partners Risk Services represents a carefully selected group of financially strong, reputable insurance companies, therefore, we are able to offer you the best coverage at the most competitive price.