Your board members and officers face many of the same risks as your business: lawsuits over hiring and firing decisions, trademark issues, and mismanagement of funds. Unlike your business, they are not protected by general liability or professional liability policies. If they’re sued, D & O insurance can help pay the cost of hiring an attorney, judgments, settlements, and other expenses related to the lawsuit.
D & O liability insurance protects board members from lawsuits related to a variety of circumstances, including:
- Mismanaged funds
- Employee grievances
- Slander, libel, and copyright infringement claims
- Failure to follow organizational bylaws
- Failure to comply with regulations
Business owners and nonprofit organizations often choose to bundle D & O insurance with employment practices liability insurance (EPLI), another type of management liability insurance. EPLI can cover your legal costs if an employee sues your business over unfair hiring practices or another violation of employee rights. A management liability insurance bundle usually costs less than purchasing the policies separately.
Interested in learning more about directors and officers liability insurance? At Knight-Dik Insurance, we’ll work with you to design coverage that protects your business or organization from a variety of risks, unique to you. For a free insurance premium analysis, simply contact us here or call 800-286-6353.