Director & Officers Insurance - Should Your Business Consider It?

Leap | Carpenter | Kemps Insurance Agency | Mar 3, 2020 | minute read

 

Lawsuits against Directors and Officers are increasing at an alarming rate. There is no doubt that many firms are managed by people who have good motives and high standards. However, mistakes do happen and we live in a litigious society that uses the court system to define what is right and wrong. Even if you did everything right, managers and board members can be sued and you must defend yourself properly.

Directors and Officers Liability Insurance provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company.

Claims can come from customers, creditors, the government, donors and others.

Claim Examples:

  • A former employee of a construction company sued the managers and board for allowing a hostile work environment. The former employee alleged a supervisor had told repeated sexual jokes. After repeated reports to management, the employee quit and hired an attorney. The case settled for $58,000.
  • A woman sued a publishing company failure to promote any female workers. The investigation and legal fees exceeded $42,000 before the suit was dropped.

Directors & Officers Insurance is an effective solution for the risks facing organizations. Our products and services are designed to fit the needs of your clients business. Our insurance policy protects directors, officers, employees, volunteers, committee members, trustees and the organization itself.

At Leap / Carpenter / Kemps, Merced, CA largest locally-owned insurance agency, we have an experienced staff of professionals who understand that each business is unique and that the one-size-fits-all approach just doesn’t work. Our agents have access to more carriers and more plans, and that means that they have more options to create the best possible combination of coverage to minimize your risks and lower your costs.

 

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About The Author

LCK Insurance Agency is one of California's most prominent independent insurance agencies. They offer commercial business insurance, employee benefits, life & health insurance, and personal insurance.

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