Sometimes there may not be a clear division of your personal and professional assets. How does this happen? A company’s officers and directors may not be properly covered on a board or committee.
Whether it’s being involved in a public corporation, private company, or non-profit – you or your board members could be at risk. As a result you could get sued. D&O insurance covers legal fees and other costs in a lawsuit.
Two Risk Scenarios
Some examples of risk
Scenario 1: You sit on a board of a school and collectively make a decision that a group of parents disagree with. In a legal case, your personal assets could be at risk.
Scenario 2: 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.