What D & O Insurance Can Do For Your Organization


If you are a director or an officer at a company or an organization, you might want to consider getting Directors and Officers or D O Liability Insurance. This can protect you from personal losses if you are being sued as the director or officer. Keep in mind this insurance only applies if you are being sued as the director or office, it does not apply to your personal life. The insurance can also cover legal fees and other costs the organization might incur because of the lawsuit against you.


The policy will probably exclude fraud and criminal offenses, or you might have to pay for these extra. Older businesses tend to pay less for this type of insurance because they are more established. Businesses with less debt will also pay less for insurance. If your company is new and has large amounts of debt, you might find yourself paying a huge amount for this insurance because the insurance company views you as risky. Always ask for ways from the company about how you can lower insurance costs.


This type of insurance will also reimburse the company or nonprofit you work for if they have incurred fees and other costs. There are many different coverage options you can choose from depending on the issues you think you might face as a director or an officer of a company.


One such coverage covers you if the company you work for does not have the money to pay for the claims and fees brought against you. This might happen if the company has declared bankruptcy or if they have large amounts of debt.


There is also coverage for companies that have paid on the behalf of your legal fees. This type of insurance will reimburse the company rather than paying for the legal fees directly. Assets might be at risk in this scenario though so you need to consider the assets you have or might gain.


There is also a type of coverage that is considered entity coverage and will extend to the corporate entity itself. The exact coverage you need will depend on the business you have and the history and finances of it.


If you aren’t sure what coverage you need, it’s always a good idea to talk to your business lawyer and financial planner to see what you might need covered.