Directors & Officers Insurance
A company doesn’t have to be huge in order for its directors and officers to be personally sued.
Any business whose officers or directors can be targeted by litigants over the management of company affairs, needs directors and officers (D&O) insurance. This type of coverage protects corporate directors and officers in the event they are personally sued. It can cover legal fees, settlements, and other costs, and can sometimes extend to protect the company if it is also named in a suit. There are many reasons why a corporate executive could be sued, including:
- Misuse of company funds
- Misrepresentation of company assets
- Failure to follow workplace laws
- Lack of corporate governance
Having D&O insurance will help your company attract qualified and reasonable directors and officers to manage your operations. In fact, many executives will not work for a business that does not offer this protection. Most investors will also require that you have D&O insurance as part of the conditions of funding your company.
Employment practices suits make up the single largest area of claim activity under D&O policies, with over 50 percent of the claims being related to employment issues. If you own a company in Connecticut, New York, or New Jersey, James P. Murphy & Associates can provide affordable and reliable D&O insurance. Give us a call at 888.450.1074 or fill out the form on this page to learn more about protecting your company and its officers.