Many executives mistakenly believe that all their needs are covered under the general insurance policy their company holds. The truth is that those types of policies actually are not designed to include such things as missteps in management coverage. They simply don’t offer the same protections that Director’s and Officer’s Liability insurance does.
There are a number of potential instances where Directors and Officer’s Liability insurance would be extremely beneficial. It protects officers and corporate directors’ personal assets if they encounter a personal suit by investors, customers, competitors, vendors, employees or other possible parties. The management protection is available whether the wrongful acts were actually committed or if they were falsely alleged.
Breach of duty which results in bankruptcy or financial losses, company fund abuse, company asset misrepresentation, fraud and the failure to heed to laws within the workplace are examples of reasons a director or officer might be sued. It is not unusual for directors and officers to insist on being covered by liability insurance before accepting the position. It’s that important.
The insurance covers losses that are suffered by the company and/or its shareholders' value due to the director and/or responsible officers. The policy not only covers the company but the individual as well.
At Oasis Insurance we will make sure you are covered across the board.contact us