Texas Directors and Officers Liability Insurance from Morgan Insurance Agency

Directors and Officers Liability Insurance, or D&O, provides coverage for the directors and officers of a business if they are sued in conjunction with the performance of their duties as they relate to the company. You’ll need Directors and Officers Insurance as soon as you assemble a board of directors.

Directors & Officers Liability Insurance can usually include Employment Practices Liability and sometimes Fiduciary Liability. Fiduciary involves harassment and discrimination suits, and is where the majority of your exposure will be.

Directors & Officers Insurance is necessary because:

• Claims from stockholders, employees, and clients will be made against the company and against the directors of the company. Since a director can be held personally responsible for acts of the company, most directors and officers will demand to be protected rather than put their personal assets at stake.
• Investors and members of your board of directors will not be willing to risk their personal assets to serve as a corporate director or officer, no matter how heartfelt their belief in your company is.
• Employment practices lawsuits constitute the single largest area of claim activity under Directors & Officers policies. Over 50% of D&O claims are employment practices-related.

Be careful not to confuse Directors and Officers Insurance with Errors & Omissions Liability. Errors & Omissions is concerned with performance failures and negligence with respect to your products and services, not the performance and duties of management.

Protect your business – contact us today!