Directors and Officers liability insurance. Picking up where your professional liability policy leaves off.
If you’re an executive of a small company, it’s critical to be aware of Director and Officers (D&O) liability insurance. And if you’re the owner of one, it’s necessary to invest in it.
Basically, it’s a type of professional liability coverage tailored specifically to the vulnerabilities of business owners and their management staff. D&O insurance picks up where a general liability policy leaves off, protecting both the company and its officers from damages. It also covers legal defense fees.
Executives of companies that specialize in research and development are at greater risk of being named in lawsuits and regulation infringement claims than ever before. D and O insurance claims are steadily 
rising as claimants are compelled to sue because, they believe, officials have breached their capacity or failed to achieve desired results for their shareholders. Research indicates that more than 30 percent of companies can expect at least one claim against its officers. In this litigious culture, lawsuits have become the default recourse. Defense fees can amount to the annual budgets of most small-market-based corporations. And unfavorable settlements can be devastating.
D & O insurance provides a valuable level of additional protection to insulate individuals from personal loss in the event of a claim. And because it excludes deliberate acts of fraud or intentional illegal activity, It does not encourage malfeasance. Instead, D and O provides the protection required to operate in an increasingly complex and vulnerable business world.
More than 95 percent of Fortune 500 companies cite D & O insurance as a core component of their corporate insurance. Small businesses, these days, are no more immune to the threats faced by worldwide brands. If it’s essential protection for them, it should be essential protection for you, too.
For a free quote, contact Peter Green Insurance at 714-258-2800 or 888-725-7776
