Skip the boat safety checklist, and you could be in for an unexpected swim this summer
Think your personal assets are safe if you’re faced with a business lawsuit? Not necessarily. Every organization and the people who lead them can be sued for “wrongful acts.” This could include any error or breach of contract, breach of duty, neglect, misstatement, or omission by an officer or director of a company that results in a lawsuit. That means both the business and the management involved could be liable.
Those errors don’t have to be intentional either. It could be a simple mistake that opens your company and your management team to financial risk from a lawsuit. That’s why Corkill Insurance makes sure every business we work with knows the importance and value of Directors & Officers insurance (most commonly referred to as D&O Liability).
All organizations – public, private and non-profit – can be vulnerable to D&O exposures. Size doesn’t matter either. You could run a large corporation or a small local business… if you aren’t protected with D&O insurance you could be sued by vendors, customers, employees, competitors and even government regulators. This leads to costly legal fees and potential settlements.
While your general liability and umbrella policies cover a multitude of things, this is a common misconception in the insurance world – and one that leaves a gaping hole in your organization’s coverage. Wrongful acts such as wrongful termination or discrimination are often excluded from general liability policies.
End of day, if the risk of D&O exposures hasn’t sold you on the importance of Directors & Officers insurance, the impact on recruiting top talent for your organization should. Many people are reluctant to take a position as a director or officer if appropriate insurance is not secured. That’s because if anything happens, damages and legal fees could come out of their own personal pockets.