Why do you need a Directors & Officers liability insurance?
The management and administration of any organization depend heavily on its directors and officers. They are responsible for making executive decisions that impact the company’s growth and profitability. However, even the most competent officers can make mistakes, leading to third-party losses and potential lawsuits. To protect against such risks, organizations can not ignore the Importance of Directors & Officers liability insurance coverage. They must opt for a Directors and Officers Liability Insurance or D&O Insurance . This coverage shields directors and officers from financial loss arising from third-party liability due to their mistakes, errors, or negligence.
In this video blog, we explore the importance of directors & officers insurance Insurance using a real-life case study. Learn how this coverage protected the organization and its directors financially, when sued.
Case Study
Phaneesh Murthy faced two sexual harassment lawsuits at Infosys. Murthy denied all charges and allegations levelled against him.
Highlights:
- Infosys subsequently settled the lawsuit for $3 million plus nearly $1 million more in costs
- More than half the money got settled through insurance
- Corporate can cover their financial risks under a D&O Liability insurance policy
Why do I need D and O Insurance?
Directors and Officers (D&O) liability insurance is essential for any organization. Here are some reasons why you should consider investing in this coverage.
- Breach of fiduciary duty
- Misrepresentation of company assets
- Misuse of company funds
- Fraud
- Failure to comply with workplace laws
- Theft of intellectual property
Purchasing a D&O Policy is crucial to mitigate workplace-related risks. It provides financial protection to directors and officers from legal liabilities arising from their professional duties. This policy helps to safeguard their personal assets and reputation, and ensures business continuity even during challenging times.
In conclusion, the importance of Directors & Officers liability insurance coverage cannot be overstated.
If you need assistance finding the right directors & officers liability insurance for your employees, SecureNow can help. Contact us at 96966 83999 or write to us at support@secuenow.in and share your coverage requirements.
