There are many kinds of insurances. Most individuals end up beating their heads pondering which insurance to take and which one to avoid and and at the end of all the headache, they take whatever their insurance agents advise them to take. Chief executives and other senior personnel of a company (including small companies) have specific insurance needs that need to be addressed in order to enable them to carry their functions without unnecessary restraints. We have created a very short list of insurance policies which each CXO should have, in addition to life insurance, health insurance and vehicle insurance. These, we believe, complete your list of “must have” insurances, depending on your circumstances. To be sure there are other insurances that are worth your while, depending on your individual circumstances, but these are the ones you must have in your armory. 

DNO and Errors and Omissions Insurance

Directors and Officers Liability Insurance (DNO Insurance) provides financial protection for the directors and officers of a company in the event they are sued in the course of their performance of their duties as they relate to the company. This is different from Errors and Omissions policy. Errors & Omissions is concerned with performance failures and negligence with respect to the company’s products and services, not the performance and duties of management. Generally it is a good idea to carry both DNO Insurance and Errors and Omissions Liability Insurance. Directors and Officers Liability Insurance can include Employment Practices Liability, which covers harassment and discrimination suits.

Keyman insurance is an important business insurance. It is typically a term insurance taken by an organization to compensate that business for financial losses that arise from the death or extended incapacity of a key person. The key persons are normally the senior most executives of the company. However, any person whose knowledge, work or overall contribution is valuable to the company can be insured. 

This is usually covered as a part of personal accident policy. Accidents can happen to anyone, anywhere and at any time. Nobody is immune to accidents, and one of the by-products of modern life is the increased possibilities of being in an accident and getting disabled. Insure yourself against these unfortunate events. Disability has emerged as a big worry in the present uncertain times. The personal accident policy covers partial and total disability, or death arising out of an accident anywhere in the world, at any time.

Professional indemnity insurance:

Professional liability insurance, also called professional indemnity insurance is a form of liability insurance that helps protect professional advice and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a lawsuit. This policy is for doctors – dentists, surgeons, and general practitioners. Similar policies are is also available to practicing architects, lawyers and other advisors. 

The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder. These are potential causes for legal action that would not be covered by a more general liability insurance policy which addresses more direct forms of harm.