☰ ˟
Agent Appointment  Call Now / 713-227-7283
Logo
  • Home
  • Get a Quote
  • What We Offer
    • Automobile
    • Bonds
    • Business & Commercial
    • Business Owners Policy (BOP)
    • Commercial Auto
    • Dental
    • Earthquake
    • Farm
    • Flood
    • General Liability
    • Health
    • Homeowners
    • Life
    • Limousine
    • Motorcycle
    • Recreational Vehicle
    • Renters
    • Trucking
    • Vision
    • Watercraft & Boat
    • Windstorm
    • Workers Compensation
  • Agents
    • Agent Appointment
    • How We Can Help
    • Carrier Appointments
    • Online Payment
    • Get a Quote
  • Policy Service
    • Customer Service Forms
    • Make a Payment
    • Claims
  • Resources
    • View our Blog
    • Secure File Area
    • Refer a Friend
    • Important Links
    • Calculators
    • Free Reports
    • Insurance Glossary
    • FAQs
    • Join Our Newsletter
  • About Us
    • About Reliable Insurance Managers Inc
    • Our Locations
    • Employment Opportunities
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Contact

What can we help you cover!
Bookmark and Share
Home > Blog > Directors need insurance
MONDAY, DECEMBER 12, 2011

Directors need insurance

In today's economy, directors and officers of even private companies and nonprofits often become targets of claims for alleged wrongdoing or breach of a fiduciary duty to the organization.

Disgruntled minority-share owners, employees, suppliers, customers and competitors can all bring a lawsuit against directors or officers of a private company or nonprofit. Being personally sued for actions taken in the course of performing corporate duties can financially cripple officers and directors -- even if the suit is completely groundless.

One of the tools for managing the risks of service as a director or officer is D&O, or directors and officers, insurance. But organizations should beware: No two D&O insurance policies are the same. A company must analyze the various D&O policies carefully before selecting one.

A typical D&O insurance policy promises to pay the loss incurred by a director or officer for any alleged "wrongful act" committed while acting for the company. Many D&O policies also require that the insurance company advance defense costs.

Directors and officers should also understand what a D&O policy doesn't cover.

For example, there is usually no coverage for claims brought by one officer or director against another officer or director, nor for personal misconduct, such as fraud, dishonesty or the willful violation of a statute or regulation. Other common exclusions are for claims arising from pollution, defamation and bodily injury and/or property damage (which are usually covered by general liability insurance), as well as claims brought outside North America.

One of the most difficult questions to answer when evaluating D&O policies is how much insurance the organization should purchase. Having sufficient D&O insurance is a selling point to potential board directors and officers, and having insufficient insurance may scare off talented individuals.


www.reliableins.net
Posted 11:51 AM

Tags: directors, need, insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020
  • 2019
  • 2018
  • 2017
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008

  • insurance(133)
  • texas(93)
  • houston(45)
  • to(44)
  • tips(39)
  • katy(39)
  • safety(29)
  • in(23)
  • for(20)
  • auto insurance(19)
  • insurancepro(19)
  • on(18)
  • auto(15)
  • from(15)
  • health(15)
  • policy(13)
  • home insurance(13)
  • business insurance(13)
  • of(12)
  • savings(11)
  • a(11)
  • agency(10)
  • coverage(10)
  • how(10)
  • car(10)
  • houston auto insurance(9)
  • complaints(9)
  • quoting(8)
  • obama(8)
  • texas department of insurance(8)
  • new(8)
  • reports(7)
  • up(7)
  • house(7)
  • homeowners(7)
  • website(7)
  • state(6)
  • more(6)
  • life insurance(6)
  • the(6)
  • what(6)
  • healthcare(6)
  • after(6)
  • renters insurance(6)
  • your(6)
  • tx(6)
  • ways(6)
  • senate(5)
  • work(5)
  • houston car insurance(5)

View Mobile Version

Our Customer Feedback

Read More

Our latest blogs

  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
Reliable Insurance Managers, Inc.
Call:
713-227-7283
We work for you. As a one-stop agency, we continually search for companies that offer great rates and that are easy to work with. Our staff of proven professionals is committed to providing you with the type of exceptional service you deserve and expect.
We're here for you
Home Page/ About Us/ Contact Us/ Our Blog/ Latest News/ Join Our Newsletter/ Refer A Friend
Quick Help Links
Quote Forms/ Service Forms/ File a Claim/ Make a Payment/ Insurance Glossary/ FAQs
Icon Icon
Icon Icon Icon
Social Icon Social Icon Social Icon Social Icon Social Icon Social Icon
© Copyright. All rights reserved. Powered by Insurance Website Builder