Why take out directors and officers liability insurance?
“Each time you see a successful company, you tell yourself it’s because someone once made a courageous decision,” says Peter Drucker, an American management professor.
Taking risks and making courageous decisions are daily tasks in the world of business, but it also sometimes leads miscalculations and management errors. Whether they come from a director or an employee, these management errors can have potentially disastrous consequences on the company’s future and involve liability issues.
That is why protection against “everyday” management mistakes is one major part of D&O insurance.
Insurance for executives: what does it cover?
Everyday management mistakes are covered by Directors and Officers insurance such as errors on tax statements, forgotten payments and even poor investment choices, for example.
It also covers errors or omissions that may unknowingly lead the company to a violation of its legal obligations.
This insurance can also cover “director-employee issues”: a failure to make good on a promise for promotion, for example.
This guarantee enables access to legal experts who can advise you on how to resolve your disputes.
Who is “directors and officers liability” insurance for?
This “executive” insurance does not company companies as legal entities, but rather the decision makers themselves to the extent of their duties. It may be signed by the company to cover its directors and officers.
> For more information on our “directors and officers liability” insurance offers, contact our advisors right away by email and they’ll answer you for free: [email protected].
