What is Directors and Officer Liability Insurance (D&O)?
Directors and officers (D&O) liability insurance protects directors and officers in the event they are personally sued when managing a company or nonprofit organization. The insurance covers costs and damages (awards and settlements) that arise from wrongful action allegations and lawsuits brought against members of the board of directors or an officer of an organization. A D&O policy can help reimburse a business for the legal fees, settlements and other costs of defending directors against a lawsuit. A director or officer can be part of a lawsuit for a company even if they no longer are part of the executive team or no longer works for the organization.
Examples of events covered by directors and officers (D&O) liability insurance can include mistakes or missing information in company accounts or other financial documents, or failing to properly enforce human resources policies.
Business leaders and executive teams are held accountable for their actions more than ever before. Stockholders, investors and employees hold an organization’s directors and officers more responsible for their workplace behaviors, management and financial practices. Redmon-Keys understand the unique risks that an executive team at a business or nonprofit faces.
If you’re looking to protect your business from potentially wrongful decisions made by directors and officers, then a D&O liability insurance policy could be a great fit. We can help you get started!