Whether you run a private business, a non-profit, or a publicly traded company, directors and officers (D&O) insurance is essential to protect your leadership team from lawsuits.
What Does D&O Insurance Cover?
D&O coverage provides financial protection for executives and board members in the event of a lawsuit arising from their management decisions. Common claims include:
- Breach of fiduciary duty – Allegations that a director or officer mismanaged company funds or assets.
- Misrepresentation – Claims that inaccurate statements led to financial losses.
- Regulatory investigations – Legal actions from government bodies over compliance violations.
- Employment-related lawsuits – Claims of wrongful termination, discrimination, or harassment.
Without D&O coverage, business leaders could be held personally liable for damages, putting their personal assets at risk.
Who Needs D&O Coverage?
Many assume D&O coverage is only necessary for large corporations. However, small businesses and non-profits are just as vulnerable. Investors, employees, clients, and regulatory bodies can all initiate lawsuits against leadership teams.
The Growing Risk of Litigation Against Executives
With increasing regulatory oversight and legal action against business leaders, having a solid D&O insurance policy is more important than ever. Ferrari & Associates can help customize coverage to suit your organization’s specific needs.
Ensure your executives are protected. Contact us today for a D&O insurance quote.
