If you want to be a successful entrepreneur, then you have to make decisions that will help your business grow and reach new heights. However, some choices might not turn out well, as is always the risk, and result in lawsuits. These lawsuits can cost you a lot of money and your time. However, there are smart ways to protect yourself, one of which is to have appropriate Directors and Officers (D&O) liability insurance. This is the most cost-effective way to deal with any lawsuits.
What is Director & Officer Insurance?
In India, directors and officers (D&O) liability insurance provides a shield to the personal assets of your directors and officers and their spouses. This comes in handy if your employees, customers, competitors, vendors, investors, or other parties sue them for alleged or actual wrongdoing in managing a company.
Now that you know what directors and officer’s insurance is and what it covers, it’s time for you to understand how you can renew your D&O policy. Sometimes, due to busy schedules and/or prior commitments, people miss a policy renewal date and often lose their insurance policy’s cover. SecureNow not only provides you with quotes from the different D&O insurance providers but also makes sure that you renew your policy in time.
Most of the Directors and Officers Insurance policies for private companies offer 30 days of extended reporting at no additional premium, which gives you time to renew your policy. If you want to extend your coverage of the D&O insurance policy for 12 months, you must pay 50% of the full annual premium. We can help you get the best D&O policy available in the market, which not only covers your legal liabilities but we also remind you to renew your insurance in time.
Here are some further tips that can help you to reduce any issues with respect to your policy renewals.
Buy Long Term D&O Plan
Many policy-buyers make the mistake of buying a D&O plan for the short-term. However, if you are planning to expand your business, then there is no point in buying a D&O insurance policy for a small period as it is important for you and your company. It will cover the cost of legal fees and other settlements. You don’t have to remember the date of your D&O plan’s renewal as a long term D&O insurance plan will last for many years.
Request Renewal Before Your D&O Policy Expires
Let’s say you brought a D&O plan for one year starting from January 1, 2019. It’s due for renewal before January 1, 2020. Rather than getting a notification from your insurance provider, it’ll be more efficient if you file a request to renew your insurance a month before it expires that is December 1, 2019. You can enjoy the term of your policy without any hassles.
Keep A Check on Insurance Renewal Alerts
Many insurance providers regularly alert their clients as they want to convey the message that their policy is expiring soon, and they need to renew it in order to continue the services. Keep an eye on these notifications and renew your policy on time. However, there are insurance companies that won’t notify you. That’s why it is advisable to compare the D&O policy of various insurance providers and choose the one that offers renewal alerts.