A Word From Our Sponsor On Directors And Officers Insurance Coverage

Directors and officers insurance coverage is to provide for legal expenses that may be incurred by an organization’s board of directors. It is becoming much more common for the board of directors of an organization to be held personally responsible for the management of an organization. The claims made against a member of a board of directors will be for non-bodily issues. The lawsuits are generally for either some sort of unfair employment practices or it could also be for the mismanagement of the organization’s money.
Directors and officers insurance will come into play when lawsuits are brought against the entire board or individuals on the board. These lawsuits can be filed by employees who feel that they have somehow not been treated fairly. It may be something the person thinks has been directed at them personally, or it could be against an organization’s employment policies. These accusations may or may not be true, but the board will still have to face the legal system to get the situation resolved. The same is true if an organization’s shareholders think the board of directors has not acted in their best interests.
To make sure that your organization is properly covered you will need an insurance agent that has had experience with this coverage. There is no standard D&O insurance policy. The details will have to worked out between the insured and the insurance company.