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Directors and Officers Liability Insurance

Directors and Officers liability insurance covers directors and officers when it comes to claims made against them while they were serving as an officer or director. We want to work with you to ensure that you have the best policy to protect you and your business.

Directors and officers liability insurance provided by Cowell James Forge Insurance Group.

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What Is Directors and Officers Liability Insurance

Directors and officers liability insurance is a type of cover that is needed when someone brings about an accusation against a director or officer, or former, because of a decision they made while they were serving on the board. It is important that you stand together in your business and find the best directors and officers d&o liability insurance.

You are going to need more information such as directors and officers liability insurance coverage limitations, and directors and officers liability prevention insurance and indemnification, on top of all the basics about directors and officers liability insurance.

What Is And Is Not Covered By Directors and Officers Liability Insurance?

Usually, directors and officer policies cover costs relating to wrongful decisions. However, not decisions that are classed as criminal acts or that are designed to personally benefit the director. The policy covers decisions that could have been seen to be made in the best interest of the company at the time, or it is reasonable to see that this is what was going on. The only way that the court will not honor the directors and officers liability insurance is if they believe it was purely selfish the motivation behind the decision.

If a director or officer makes a decision and forgets to follow the proper human resources protocol, this would be covered by the law.

Depending on the state the business is based in, the policy could cover damages and costs paid by the individual or by the business. Make sure that you check your state’s rules on indemnification because you are going to need to be aware of what has been going on here.

What Are Your Policy Options?

You should always check your policy extremely carefully before you agree to anything. Make sure that the wording is entirely correct and the coverage period is what you want it to be. Some people want the coverage period to be when the claim is made, not when the decision was made, X amount of time ago.

You should talk through all of your options with an expert if you don’t know what the choices are right now. There is a lot to take in, but you need to ensure that you are listening and make the right choice regarding the directors and officers liability insurance.

Protecting The Business From Bad Choices

Everyone makes mistakes, and when you are constantly under pressure then your decision might not be the best. Senior officers in a business are paid to make big decisions, but if those decisions are wrong, things can get very difficult for the business in terms of how much money is owed out. Directors and officers liability insurance covers the costs of settling claims for damages that result from poor decisions from any of the members of the board at the time.

There is a huge difference between bad choices and selfish choices though, which will be made clear when you make a claim on your insurance at some point down the line. Bad choices have the ability to crumble a business, but that doesn’t mean that they are not your decisions to make.

How Much Does It Cost?

This is going to depend on the coverage that you choose to purchase. There are certain policies that can be added to an existing policy which will of course, make the policy cheaper. Seeing as there are certain criteria that need to be met in order to take it from one price or another, you need to know what they are. As such, if you would like to know roughly how much you would be paying, you need to get in touch with an insurer and give them all of the information that they require for you.

Get In Touch With Us Today

If you decide that you are interested in directors and officers liability insurance, then don’t hesitate to give us a call. A member of our team is ready and waiting to answer any and all queries that you may have, as well as providing you with a free quote so that you can get an idea as to what you would expect to pay.

Directors and Officers Liability Insurance - Senior Leadership in the Boardroom

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