June 01, 2018

Directors & Officers Liability Insurance

Directors and Officers can be held personally liable for decisions made.

If given the privilege to serve on a board of directors it is important to know that you may be held liable for decisions you make as a board member.  There is protection available for Directors & Officers of both privately held companies and non-profit organizations.  Directors & Officers insurance policies can protect against legal action for scenarios including but not limited to the following:

  • Improper oversight of internal management controls.
  • Interaction with regulatory authorities.
  • Failing to verify facts in official documents before signing and filing them.
  • Distributing assets without adequate provision to pay or secure corporate debt.
  • Lack of awareness of conflicts of interest.
  • Discrimination against minority shareholders.
  • Incorrect earnings forecasts.
  • Wasting corporate assets.
  • Insufficient monitoring or supervision of officers or other employees.
  • Failing to treat equally those making competing acquisition offers.