You want to be prepared for everything with your business. Therefore, insurance, particularly directors and officers liability insurance in this case, is a must. With insurance for the highest ranking members of your team, you’ll rest easy knowing that they’re covered against lawsuits, disputes, and more.

What Is Directors and Officers Liability Insurance?

Directors and officers (D&O) liability insurance offers you protection for claims made against the decision makers of your business. These claims can include wrongful action, allegations of discrimination, negligence, and more. Regardless of what took place, this insurance will make sure you do not have to invest time and money in such a situation.

Directors and officers liability insurance covers many situations, making it a comprehensive choice for protecting your business and its most important team members.

Protection Against Wrongful Lawsuits

Wrongful lawsuits and false claims can strike any business, no matter how big or small. These claims can damage your business, both in terms of reputation and cost. Directors and officers liability insurance protects you against these types of lawsuits, which is important for the well-being and longevity of your business.

Protection Against Mistakes

It’s possible for your employees to make mistakes. However, if employees involved in the leadership of your business make a mistake, the results could be disastrous. These mistakes could include a failure to comply with a regulation, any HR issues, or mismanagement.

Sometimes, these mistakes do not warrant letting the employee go. Directors and officers liability insurance will make it possible for you to avoid the issues involved with these types of lawsuits, and will protect your employees from them, too.

Lower Costs

Lawsuits and other legal issues can be incredibly costly. You will need to hire a lawyer and take time off work, which decreases productivity and leads to loss of income. These are only two ways it hurts your bottom line.

There’s nothing more frustrating than hidden costs and interruptions to your daily life at work. Directors and officers liability insurance helps cover these costs so that if you face a costly lawsuit, you can rest knowing that your business will remain stable.

Protect Yourself

If one of your employees in a leadership position commits a criminal act, the consequences can trickle down to you and affect your business. Directors and officers liability insurance offers you and your business protection against the things you cannot control, such as actions of your employees.

Even your most trusted employees can prove to not be exactly what you expected. You’re going to want to be protected from their errors in judgement.

Take Action With D&O Liability Insurance Now

Don’t wait until a lawsuit has been brought against your business to purchase directors and officers liability insurance. Most times, your insurance won’t cover anything that began before the date of purchase. Waiting could prove dangerous and costly to your business.

Directors and officers liability insurance can be beneficial for your business if you have many employees in leadership positions. Both you and your highest ranking employees will appreciate the extra protection and added benefits that it offers.

Learn more about D&O Liability Insurance from Harrah & Associates.