Directors and officers insurance protects people who choose to contribute their time to an organization’s mission. Proper insurance coverage allows you to run a successful business in Lethbridge with less headaches.
In the case of a lawsuit, your business and your board members’ assets are at risk. Board members can be held accountable for the actions and direction of the business.
Discover how to give back to the Lethbridge community while covering yourself from any liabilities.
Why You need D&O Insurance
There are risks to running your business. But why leave those potential risks exposed. Below are a few scenarios.
Scenario 1: Your company acquires talent from another business and starts to promote a similar product. The business sues you for potentially stealing their intellectual property rights.
Scenario 2: You sit on a school board and collectively make a decision that some parents disagree with. In a legal case, your personal assets could be at risk.
In the above scenarios, it pays to have the correct insurance to pay for any legal fees.
It’s important that you carry out your organization’s daily business operations. A solid D&O insurance policy helps you avoid unnecessary costs.
Call us today and one of our skilled brokers will walk you through the benefits of an insurance policy.
Whether you participate in an agency, on a board, or on a committee, you could have the following risk scenarios:
Decisions exceeding the authority granted to the board member
Reporting erroneous material
Employment practices & HR issues
Failure to comply with regulations or laws
Inaccurate disclosure (such as profitability, for instance)
What’s Not Covered?
There are some exclusions when you carry D&O insurance.
Fraudulent or intentional non-compliant acts
Property Damage and bodily harm (excluding corporate manslaughter)