As a small business owner, it is important that you can create a healthy balance between profits and losses. In doing so, many small business owners have to sacrifice certain coverage options in order to continue seeing profitable results. However, failure to obtain directors and officers liability insurance (D&O liability insurance) can be extremely consequential. We live in an unfortunately litigious society, emphasizing the importance of safeguarding your biggest investment from all possible perils, especially lawsuits.
At Purves & Associates Insurance Services, we offer the following benefits for a directors and officers’ liability insurance policy:
- First Dollar Defense (For Qualified Accounts)
- Costs of Defense (In Addition To The Liability Limits – No Additional Charge)
- Fiduciary Liability (Optional)
- Employment Practices Liability (Optional)
- Third Party Coverage
- Access to HR Attorneys
When securing a D&O liability insurance policy, it is important to consider the following:
- When determining coverage limits, you will need to think about whether your D&O liability insurance policy will only cover the directors and officers of your organization or the entire entity as a whole.
- Depending on the nature of your business, it may be to your advantage to obtain additional coverage. Additional liability coverage is typically sold in increments of $1 million of coverage.
- It is important that you confirm that any innocent directors will be covered if another member is found guilty.
- Most importantly, you must understand your commercial policies to the fullest. This means knowing exactly which types of liability claims will be included in your directors and officers insurance policy and knowing what is excluded from coverage.
Serving Davis, Sacramento, and surrounding areas, contact Purves & Associates Insurance Services for all of your California business insurance needs. We can help you add a D&O liability insurance policy to your existing commercial insurance policies to maximize protection of your biggest investment.