Because directors and officers hold high positions of authority within your company, they are more likely to face negative repercussions as the result of a legal claim that a customer brings against your company. To make sure your directors are well-protected in case they become targets of a lawsuit, it is important to make sure you carry director’s liability insurance.
Benefits of Directors Liability Insurance
Directors liability insurance is worth the cost because it provides several different protective benefits for the high-ranking officers in your company, including indemnity coverage for your employees and your business. It also provides protection against legal defense costs that can quickly add up and cause significant financial damage to unprepared companies. In order to prevent your company from facing the full financial repercussions of lawsuits, it is important to talk to your insurance company about adequate liability insurance for your directors and officers.
Planning Is Important
Planning for potential litigation is important for companies of all sizes, especially in today’s difficult economy. Individuals are more likely to sue nowadays whether they have a good case or not, but a good liability insurance policy can help you meet unexpected lawsuits with greater confidence and security. It is always wise to err on the side of caution when it comes to the proper amount of directors liability insurance coverage for your company needs.
photo credit: U.S. Army Garrison – Miami cc
