Directors and officers (D&O) liability insurance is an insurance policy that covers and protects the directors and officers in an organisation from the financial and reputational costs of the regulatory or legal action. Whether or not you’re found liable, the costs of defending such proceedings can be significant.
With stricter corporate regulations in place today, Directors & Officers are under increased pressure to carry out their duties and obligations accurately. Failure to do so may lead to personal liability for the individual director or may even affect the entire board of directors.
Learn how EWIB can help you
We understand that, while you don’t wish for anything negative to happen in the course of working, there’s a chance that it may – and while you don’t want to hope for the worst, you certainly can plan for it. D&O liability is in place to protect Directors & Officers personally from the financial and reputational costs of regulatory legal actions. No matter the size of your organisation, this policy protects from claims made against you by a third party – from shareholders to customers.
The D&O insurance segment will continue to grow and develop in the years to come, and at East West Insurance Brokers, we know just how important it is to keep up with these changes. Our brokers can offer you security and flexibility with D&O liability insurance.
Why Is D&O Liability Insurance Important?
D&O liability is not immune to risk exposure in an organisation. Claims from employees, clients and stockholders may be made against the directors and officers of an organisation. It’s not only a necessary coverage for large corporations, but it’s also an essential aspect to help protect small organisations and their owners/shareholders appropriately.
Having a D&O liability policy in place provides protection in the event of any actual or alleged error, misstatement, omission, misleading statement, or breach of duty. In addition, some policies may extend the same coverage to employees. Ultimately, the policy will let you focus on running the organisation rather than worrying over prolonged litigation.