If you own a business and require board members and a board of directors then there is a need for directors and officers insurance. You should realize that many people won’t work with and for you unless you have this type of insurance in place. There are things that they need protection from and you are supposed to give it to them. Here are a few of the risks they have by working for you.
If your company is brought into a lawsuit there are many things that can be brought into the case as far as assets go. Your board of directors can be held liable for their responsibility in the matter and have their personal assets brought into the case, which can be a very frightening aspect. When they start working for you they will most likely bring up whether or not you have directors and officers insurance in place because they are aware they may end up in court one day without it. You as a company owner should realize that they should have the protection so you can keep your board of directors and board members happy.
You will end up with happier board members and officers once you get the directors and officers insurance that is required by most of them. They will be able to efficiently do their job for you without worry.