Many folks associate insurance as something only doctors or professional drivers need. Those who are directors or officers need d and o liability insurance in order to prevent problems from occurring at their job. Here’s an overview of what this insurance covers.
Getting Sued in Various Business Relationships
Directors and officers can get sued by customers, vendors, investors and even employees. Having protection in such cases is necessary to prevent bankruptcy and other problems that a director or officer might face. Consider the fact that more than one lawsuit can occur at once for each of these groups, and it becomes obvious that having D&O liability is important for company success.
Company Revenue Doesn’t Need to be High
It’s a mistaken belief that company revenue needs to be high (such as 1 million or more) in order to take advantage of d and o liability insurance. Small businesses need protection too, in order to avoid getting sued. Getting the coverage before an issue arises can ensure the process is smoother, rather than getting liability protection in the middle of a problem.
D&O liability insurance is helpful to have in the event of a problem. It can cover different relationships that go beyond getting sued by a customer. It’s not necessary for the company to be large or successful either, in order to take advantage. Getting coverage now is the best advice for anyone regardless of what the company needs are.