The directors and executives of a company play a special role in their business. They are crucial in the operations of their company, but they also face a number of specialized risks related to the work that they do. It’s important that every company have good directors and officers insurance as part of its corporate insurance policy.
Both privately and publically held companies need to be protected with directors and officers coverage, as well as various other entities such as schools, nonprofits, associations, and financial institutions. Even public officials can find directors and officers insurance useful. Since every organization and situation is different, it’s important to find a plan that is custom-tailored for a specific company, depending on factors such as bylaws and organizational structure.
Generally, this type of insurance includes coverage for the personal assets of officers, directors, and executives, also known as Side A Coverage. Side B coverage includes reimbursement to the company for the cost of any claims made against directors and officers, if the company chooses to indemnify them, and Side C coverage includes protection if the business itself is listed as a defendant in a liability claim.
Whether it’s for a small business or a major nonprofit, having good directors and officers insurance is important. A solid coverage plan can help protect executives and their companies, ensuring that business keeps running smoothly.