Directors and Officers
What happens if those decisions has unintended consequences such as a lawsuit?
What is Directors and Officers Liability?
What does Directors and Officers Liability cover?
Is Directors and Officers Liability Important?
Who needs Directors and Officers Liability?
Any business that has large sums of money owed to creditors are susceptible to liquidation. When there is an inability to pay creditors, the blame is often pointed towards the company’s directors and officers.
Any company who intends to hire a top executive can use this policy as an attraction. Some executives will not even consider joining a company without this coverage.
An organization with a board of directors, whether it is private, public or non-profits, will find a D&O policy beneficial.
If you are looking to secure investors from venture capital firms.
How much does a Directors and Officers Liability policy cost?
The cost of a D&O policy depends on multiple factors:
- Legal History
Typically, a business that has been established for longer, with an experienced group of leaders can expect to pay less due to lower risks of litigation. Furthermore, the more assets, income and shareholders results in higher rates. Insurers will also look at financial stability, as low risk of bankruptcy can lower cost. Lastly, the higher the coverage, the more it costs.