Being at the top of an organization has many undeniable perks. Some of these include more power, more influence and oftentimes, a higher pay grade. However, being at the top also has many responsibilities, and this is especially true of those that sit on the board of directors or officers. When claims arise against the actions of these individuals, having coverage can prove to be invaluable for protecting assets and a company’s reputation. From basic legal fees to a civil monetary penalty, insurance is one of the most important investments that can be made to protect these individuals and the companies for which they work.
Types of Organizations That Need It
Depending on the type of organization, director and officer liability insurance may be highly recommended. Some institutions that typically seek this type of coverage include those in both the public and private sector such as the following:
- Homeowners associations
- Medical facilities
- Finance companies
Having this type of coverage can help these organizations protect their assets from a seemingly endless list of offenses committed accidentally or intentionally by their directors and officers. By having special coverage under these plans, such as civil monetary penalty insurance, it is easier to be confident knowing that these professionals can better focus on contributing to the growth of the organizations for which they work.