Many companies believe that they do not need commercial liability insurance, which is otherwise known as directors and officers liability insurance.
Acts Leading to Claims: This provides protection from legal defense expenses and financial damages. Claims relating to, Mistakes, Omissions, Neglect, Breaches of duty, and misleading statements or misstatements.
With Officers and Directors Insurance this protects each individual from financial damages due to an actual or alleged wrongful act. Covers past and present officers and directors and sometimes the employees as well.
One misunderstanding about this insurance is that it provides corporate leaders with blanket coverage and it doesn’t protect them against illegal acts or negligence.
Those who need this: When a board of directors or an advisory committee is looking for investments, they should buy D&O insurance. Depending on their business type, non-profits and private companies should consider it.
For more information contact Brazelton Insurance Group.