If you are a board member or other officer of a company you should be aware of the risks you are taking by representing a company. There are many things that can happen to you without the company you are working for having directors and officers insurance in place for you. Many people think this insurance is not necessary, but in today’s society where people can be sued for almost anything you should have the protection you deserve. Here are a few things that can happen to you without having the right coverage.
When people feel that a company has treated them badly or given them the wrong services they will likely bring a lawsuit against that company. They will bring everyone they feel is responsible into the case along with all of the assets. They will believe they can get your personal assets out of the case and will try to take advantage of that. You shouldn’t have to have any of your assets brought into the case. You should have directors and officers insurance to protect you against any responsibility in a case against the company you are working for.
Next time you start working for a company you should tell them they need to have the proper insurance in place before you start working for them. You’ll be able to do a much better job if you are protected the right way.