Directors and officers are in positions that often require them to deal with highly sensitive information. Various types of problems can occur, where it might be helpful to have insurance. Here are just a few d&o claims examples.
Misrepresenting information might be intentional or by accident. According to Axis Insurance, this type of situation can include a breach of fiduciary duties and even common law fraud. Knowing how to represent information is important and should never be taken lightly. By having the right type of d&o coverage, you can avoid these types of issues when at work.
Credit Fraud and Corporate Secrets
It’s important to know how to handle sensitive corporate information. If it gets into the wrong hands, this could be a major problem for a company. Likewise, using credit information to pay for purposes other than the creditor intended is highly illegal and can cause further problems, such as high fines or even time in jail. Having d&o coverage is necessary if a director or officer is accused of performing these acts.
These d&o claims examples show the type of problems that can occur in this position. By having the correct type of insurance coverage, directors and officers can feel confident in their work.