29 Mar Does My Business Need D&O Liability Insurance?
Businesses need a lot of protection, from cyber liability to employee liability and beyond. As a business owner, you run the risk of shutting down if you don’t have the proper protection. However, at Paradiso Insurance we’re here to give you the coverage you need, and something you may not have thought about for your business is D&O liability insurance.
What is D&O liability insurance?
D&O liability insurance, also known as directors and officers insurance, is a commercial liability policy that protects an organization’s board from claims against a single director or board of directors.
Who can get D&O liability insurance?
Any type of organization can add this to their commercial liability policy. Typically, non-profit organizations, condo associations, private companies, public companies, and financial institutions have this to protect themselves and their board of directors against common claims such as wrongful employee treatment, improperly disbursed funds, and allegations from third parties.
Non-profit organizations are highly vulnerable, because they use donations and volunteers to function. If a volunteer or donor made a claim, the organization could face a major financial burden or even have to shut down.
Why is having D&O liability insurance necessary?
Similar to any of our insurance products we offer, you need to have protection from liability. As previously mentioned, a variety of claims can be made against your board members. Therefore, it’s important to have protection in place for if and when something unfortunate happens. D&O liability insurance in particular can protect board members of organizations from being sued for their decisions and helps to cover the costs associated with legal fees and settlements. Lawsuits can and do happen. Therefore, it’s important to make sure your organization or business is protected.
Who should I contact about adding D&O liability insurance to my current policy?
While we have a variety of licensed insurance agents who can help you with your insurance needs, you’ll need to contact our licensed commercial agents, Stephanie Fanelli or Tamara Pinney, about this product. They’ll guide you through your options and compare rates of the various carriers we use to provide your organization with the coverage you need for the best price we can find. Stop in or contact us today for a free quote.