As a business leader, you understand the importance of protecting your company and its assets. But did you know that Directors and Officers Liability (D&O Insurance) protects you and your executive team from personal legal action? Appropriate D&O insurance provides coverage for damages and settlements arising from alleged wrongful actions. This can include actions such as mismanagement, discrimination, or even fraud brought against your company’s board of directors or officers. It also covers legal fees and other expenses incurred in defending these individuals in a lawsuit.
Imagine your company is facing a lawsuit alleging that a member of your executive team engaged in insider trading. Without D&O insurance, this individual would be personally responsible for any damages awarded, as well as the cost of their legal defense. With D&O insurance in place, the insurance company would cover these costs, protecting the individual from personal financial damages.
Additionally, this professional insurance can also protect individuals who are no longer apart of your executive team or employed by the company. For example, a former CEO may be subject to legal action stemming from their decisions while at the helm. D&O insurance can provide coverage for any damages or legal expenses in this situation.
Don’t leave yourself or your executive team exposed to personal financial loss – consider D&O insurance to be a necessary safeguard for your business and a powerful tool for stability and sustainability in the workplace.
Start a conversation with ZRM Brokerage today.