Why Directors and Officers Insurance is Essential

Directors and Officers Insurance

Protecting your business from potential risks and harm often associated with unexpected lawsuits is vital. Directors and Officers insurance, often called D&O insurance, is one way to guard directors and other professionals from unanticipated financial obligations. This form of professional liability has a more narrow field of coverage and is essential to insuring your company and team from various risk exposure.

What’s the Difference? 

While both D&O and E&O insurance are considered forms of professional liability coverage, their coverage is distinctly different, and both are crucial to maintaining a successful business strategy. One protects products and services while the other guards higher management’s decisions.

Cover Director Assets

This coverage is ideal for a higher tier of executives or professionals and protects them from allegations of negligence or wrongdoing. Additionally, D&O insurance can also preserve directors’ personal assets not repaid in the company’s by-laws. This coverage also goes beyond traditional Errors and Omissions insurance because it shields high-level management within the company from lawsuits associated with defamation, improper disposal or failure to follow by-laws.

When you are sufficiently insured, you can have peace of mind that company assets and business professionals are protected against unforeseen financial strain. Directors and Officers insurance is one way to keep your officers and board members guarded against such events.