The employees you hire for your organization are its driving and steering wheels. Their hard work builds your company’s growth. Among all employees, your senior executives and directors play a major role. They invest their time and experience in taking key decisions for your company and steering it to success. It’s not surprising that you always seek to hire highly experienced and high-quality professionals in your team, to be able to deliver consistently superior results.
It’s also a fact that grabbing the best talent in the industry is tough, especially amongst senior officers and directors.
Here’s how a D&O policy can help you attract talented Directors.
D&O refers to a Directors and Officers’ liability insurance policy. This is a risk management tool that every small and big organization should use to stay successful. If you haven’t invested in this policy yet, you might not know about the several benefits of this type of insurance policy. Before considering how this policy can help you attract new talent, let’s take a brief look at what a D&O policy is.
What Does Directors and Officers Liability Insurance Cover?
A Director and Officers insurance policy provides cover for the personal liability of the directors and officers in an organization, in case a lawsuit is filed against them alleging wrongful professional acts at the workplace. Its coverage includes any expenses on defense costs and for payment of compensation claims. Some of its important coverages are mentioned below.
- Minimum Risk to Shareholders’ Claims
Today’s competitive business world calls for a dynamic environment at work. You and your core team members need to make quick decisions for the company’s benefit, which some stakeholders in your company may not like.
The worst-case result includes lawsuits being filed against other directors in your company, or other team members. These legal claims may force your company to pay for the legal defense costs and may even have an impact on the personal assets of the accused.
You can manage the risk of these lawsuits and claims by buying a D&O policy. Under the insurance policy, the legal costs involved in defending yourself and other team members in the court will be reimbursed.
Those who want to join your company will see this policy as an additional benefit they get along with their employment.
- Coverage Extended to Multiple Nations
If your organization is involved in trade with foreign nations, there is a high degree of risk associated with your business.
For instance, if one of the company’s directors makes a business decision that causes financial loss to a supplier in a foreign land, the overseas supplier may file a case against your company. Legal proceedings will then begin as per the law in that country.
Directors and Officers liability insurance caters to such situations as well. It can provide worldwide coverage for jurisdiction, along with covering lawsuits filed in India. This is an added advantage that you can offer to a senior professional to attract him or her to work for your company.
Since the coverage limits and benefits are defined as per policy terms, you must check what are the coverages and what isn’t while buying it.
- Reputational Loss Gets Covered
Have you heard about a scam allegedly caused by, or a case filed against the director of a renowned company in India? Just imagine the kind of reputational loss the company faces in such situations.
Following the lawsuit, the business clients and even direct customers start to think twice before buying products or services the company offers. Usually rebuilding the reputation of the company takes significant amounts of time, money and effort.
An advantage you get with the directors and officers liability insurance is that it provides coverage for damage to reputation. For a new employee in your company, this shows that you have done your part in maintaining the company’s reputation.
Your business is characterized by what you sell, and who you have hired to work for its sustained growth. This is why attracting successful professionals to work for your organization is essential. With a D&O policy, you give prospective candidates a huge reason to join your company.