This kind of insurance is taken to provide adequate security to directors and officers of a company in case they got sued by shareholders, creditors, competitors, and consumers for any omission, fraud, cheat, and other event in concern with that company. This particular type of insurance has been introduced to safeguard the interests of directors and officers of a company in case they are accused of errors and omissions in their normal course of working.
Also known as D&O insurance, this type of insurance protects directors and officers of any unforeseen financial liability. It will also include other insurance like Employment Practices Liability and at extent Fiduciary Liability.
Insurance for directors is often misinterpreted with Errors & Omissions Liability which is an incorrect concept. Directors officers insurance is major deals with negligence and omission in daily performance of a person whereas Error & Omission Liability concerned with lack in providing adequate service in terms of products and services. In normal situations, companies take such insurance protection while in some companies both directors and company share the responsibility of paying off the premium.
Where to Find Directors & Officers Insurance?
There are many insurance companies and institutions where you can find adequate protection policy to secure your company’s directors and officers. Companies having a full-fledged board of director usually sought for such insurance policy to protect their personnel.
Need for Directors and Officers Insurance
Such insurance is necessary for dealing with the claims of stockholders, employees, and clients. There will be cases, when directors are to be blamed for improper running of the company’s function and duties.
It is important because investors and board members will be unwilling to risk their personal wealth and assets to provide adequate compensation in the company. It safeguards the officers and directors from all such miss happenings and keeps them tranquil for life.
Also known as D&O insurance, this type of insurance protects directors and officers of any unforeseen financial liability. It will also include other insurance like Employment Practices Liability and at extent Fiduciary Liability.
Insurance for directors is often misinterpreted with Errors & Omissions Liability which is an incorrect concept. Directors officers insurance is major deals with negligence and omission in daily performance of a person whereas Error & Omission Liability concerned with lack in providing adequate service in terms of products and services. In normal situations, companies take such insurance protection while in some companies both directors and company share the responsibility of paying off the premium.
Where to Find Directors & Officers Insurance?
There are many insurance companies and institutions where you can find adequate protection policy to secure your company’s directors and officers. Companies having a full-fledged board of director usually sought for such insurance policy to protect their personnel.
Need for Directors and Officers Insurance
Such insurance is necessary for dealing with the claims of stockholders, employees, and clients. There will be cases, when directors are to be blamed for improper running of the company’s function and duties.
It is important because investors and board members will be unwilling to risk their personal wealth and assets to provide adequate compensation in the company. It safeguards the officers and directors from all such miss happenings and keeps them tranquil for life.
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