Business owners and executives have a great deal of responsibility. They also have a great deal of liability, and unfortunately, standard liability insurance may not cover as much as you think. Fortunately, other policy options can.
Insurance for Directors and Officers
This coverage is also referred to as d&o insurance. The purpose of these policies is to protect executives in case they get sued for performing wrongful acts. They must have been performed while the individual was acting in their professional capacity. If a CEO conducts a crime on his or her own time and it has nothing to do with their company, Directors and Officers Insurance will not apply.
Types of Negligence
There are several different ways business leaders can perform wrongful acts. Some of the most common are:
- Committing fraud
- Misusing company funds
- Performing a breach of fiduciary responsibility
- Misrepresenting or falsifying company assets
- Not complying with laws
You can learn more about what constitutes negligence by visiting www.kdisonline.com.
If a business leader does get sued for some type of wrongdoing it can become costly very quickly. Lawyer’s fees are generally quite high, and they will bill for all the time needed for researching and investigating the claim. There may also be court fees and processing fees.