D&O Liability Insurance (D&O) offers financial protection, for your company’s directors and officers, from lawsuits regarding the performance of company-related duties by directors and/or officers.
Typically, employment practices liability (EPL) is included in D&O coverage. Having employees comes with a significant risk exposure to employment practice-based claims and suits (such as harassment and discrimination suits). EPL offers protection when these claims and suits arise.
Often, fiduciary liability can be included in D&O coverage as well.
D&O Coverage is not the same as E&O Coverage
Directors and Officers Liability Insurance offers coverage in legal matters pertaining to the performance of duties regarding the management of a company.
D&O is not to be confused with Errors & Omissions (E&O) Liability Insurance, which offers coverage in legal matters arising from claims of negligence and/or performance failures of a company’s products or services.
D&O Coverage --- Effective Risk Management
Just by having directors and officers, a company boosts its risk exposure. D&O coverage effectively helps your company manage the inherent risks of having directors and officers.
In many instances, D&O coverage will be required by potential directors and officers who want to serve --- but don’t want to risk their personal assets when acting in the interest of the company.
Others who may want to see D&O coverage are your company’s potential investors. Having an active D&O liability policy is viewed as being prudent and responsible!
Benefits of D&O Liability insurance
- Directors and Officers in companies are vulnerable to lawsuits, and need protection.
- Companies themselves are also at high risk, and should have protection.
- In the case that Directors and Officers do take a loss, such policies can indemnify them.
- It serves as a resource to help with defense costs in response to investigation and lawsuits.
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.
