The solution? Directors and Officers insurance from Burton & Company is a great tool for protecting the assets of executives so they can lead confidently and effectively.
What Our Policies Cover
In short, our Directors and Officers (D&O) policies can help your directors and officers to navigate any lawsuits that are brought up against them related to their financial management of the company, including the expenses of attorneys and negotiating settlements.
Here’s a look at what is covered by a typical D&O policy.
The modern business world is fast-paced and extremely competitive. While trying to gain an edge over the competition, some questionable business practices might come into play. Your executives might feel they have done nothing wrong, but the competition may see it differently.
Your executives could be sued for potentially illegal and anti-competitive practices such as breaches of intellectual property, collusion and the misappropriation of trade secrets. Even if your company did nothing wrong and wins the case, your legal expenses could be staggering.
When shareholders who own large stakes in a company believe something your executives are doing does not have their best interests in mind, it could prompt them to file a claim against management. Our D&O policies can offer protection in these types of lawsuits.
Bankruptcy is another area where D&O insurance can be valuable. It can provide indemnification, protecting your directors’ and officers’ personal assets by helping with the legal costs of defending against claims by trustees, creditors and past investors.
One of the most common areas of D&O claims are employee lawsuits. When an employee feels they are not being treated fairly, they may reach out to management. Should they believe that management does not properly address their concerns, they may decide to file a lawsuit.
While Employment Practices Liability Insurance (EPLI) may cover employee practices claims filed against the company, lawsuits that are directed specifically at the business’s directors and officers and their personal assets will only be covered by a D&O policy.
Some of the employment-practices-related claims that may be filed against directors and officers include:
- Failure to address health or safety concerns
- Improper hiring processes
- Wrongful termination
- Breach of employment contract
Make Your Company Stand Out
The valuable protection afforded by a D&O policy has additional benefits when it comes to attracting the best directors and officers to your organization. Without it, their personal assets could be at risk. Many top candidates won’t even consider taking on a role at a company that does not have a D&O policy in place to protect its leaders.
It can help you to:
- Attract more investments from venture capitalists and private equity firms
- Recruit new executives more easily
- Retain your current directors and officers
Get In Touch With Burton & Company Today
Make sure your company’s board is protected and let your directors and officers focus on growth without putting their assets at risk. Get in touch with Burton & Company today to learn more about how our directors and officers insurance can protect key decision-makers at your organization. To learn more about D&O insurance or to acquire a policy, call us at (888) 652-1325 or request a quote online today.