Serving as a corporate officer or board member can involve considerable liability exposure. Companies of every size and spanning every sector need to evaluate their current D&O liability insurance coverage to assure that their most important team members have the protection that they need to execute their duties effectively and manage risk.
Fulfillment of Fiduciary Responsibilities
As a corporate officer or director, individuals have a fiduciary duty to serve their companies with a high degree of care. That duty of care also extends to the people or business entities that the companies who they work for serve. Any perceived breach of that duty could result in a claim against individuals in their capacity as an officer or director. An entire board, for example, could face a claim for an alleged failure to manage the obligations associated with their roles.
Representation for a Corporation
A claimant can institute a legal action against a corporation as well as its officers and directors jointly and severally. Executives and board members are a likely target for claims because they work directly on a corporation’s behalf.
Obtaining D&O coverage will safeguard managerial personnel against liability. It can help with legal costs, settlement agreements, and judicially ordered awards for damages. Without this vital policy, directors and officers could face potentially staggering losses.