A Business Necessity

Directors and Officers Insurance is considered an essential component of a comprehensive corporate liability insurance policy. It also makes a business look more attractive to potential managers and executives, which is why many businesses purchase it themselves. Some countries don’t allow for this, leaving the directors and officers themselves responsible for their own coverage. Whatever the particular national arrangement might be, corporate higher ups do not want to be left without this exceptionally valuable type of insurance.

The Essence and Function of D&O

Talented directors and officers are at their best when they can take strategic risks without excessive liability hanging over their heads. This is the principle which lies at the core of D&O liability insurance. They ought to know, however, that D&O insurance does not serve in any way as consent or cover for anyone to engage in acts which they know to be questionable or wrong. Such a misunderstanding should be firmly put to rest at a corporate level before directors and officers liablity insurance is ever implemented.

While D&O insurance is not an excuse, it is definitely protection. And executives need protection in order to make those “executive decisions”. Despite reports to the contrary, corporate executives have never been under the microscope as much as they’ve been in recent years. Misplaced populism has engendered unjustified antipathy toward executives, and this venom has unfortunately seeped into the court system. Without D&O protection, your aces would be left high and dry.

What D&O Insurance Is and Is Not

For something as critical as D&O liability insurance, it’s crucial to know exactly what is covered, and what is not. Not all plans are equal, by any means. You ought to know exactly what you need, and whether a particular insurer provides it.

About Dumont Insurance Corp.

Dumont Insurance Brokers Corp. – renowned for the cumulative industry knowledge, experience and insight of its staff, its close attention to customer care, and its innovative, automation-tinged model – was developed with a unique system underwritten by the most trusted and highest-rated carriers. This unique equation allows Dumont to provide customers with the very best, and most cost-effective, professional liability and E&O coverage, in spite of the ever-increasing hazards of a litigious society.


Get a Free D&O Quote Now

Organization Type*