As your company grows, your insurance needs to grow too. If your business has a formal corporate structure with company officers and directors, you need coverage that reflects the risks associated with having those high-level operators in positions of power. Understanding when your company structure has reached this point is important, which is why Financial Guaranty Insurance Brokers, Inc. goes out of its way to educate customers about the subject. Without the right directors and officers liability, your business is left exposed when its high-level operatives make certain key decisions about the operation and those decisions wind up being in error or bad faith.
Coverage as Individuals and Operators
D&O insurance needs to cover both the individual and the company to be complete. Side A coverage protects those individuals, providing coverage for their personal liability when making decisions about the company and on its behalf. It also needs to protect the company from loss due to exposure caused by those decisions. If you aren’t seeing both sides of the coverage in a quote, you need to make sure to ask after them and find out what it will take to bring you up to full coverage. That or you could switch to a provider who’s policies are built to suit your needs out of the box.