Call Us 972-234-5588 ☰ ˟
Logo
Call Us: 972-234-5588
CallCall CallText Social Social Social Social Social
  • Home
  • About Us
    • Our History
    • Our Staff
    • Our Specialities
    • Testimonials
  • Products
    • Personal Lines
    • Commercial Lines
    • Industry Solutions
  • Get a Quote
    • Auto / Motorcycle / RV
    • Homeowners Insurance Quote
    • General Liability Quote
    • Workers Compensation Quote
    • Commercial Auto Insurance Quote
    • BOP Quote Form
    • Bond Request Form
    • Builders Risk Insurance Quote
    • Professional Liability Insurance Quote
    • Cyber Insurance
  • Customer Service
    • Report a Claim
    • Changes to Your Policy
    • Request a Certificate
  • Our Companies
  • Payments/Claims
  • Insurance Tips
    • Tips Blog
    • Builders Risk FAQ
    • Glossary
  • Contact Us
    • Contact Us
    • Our Location
    • Refer a Friend
    • Join our Newsletter
Business Icon

Business

We browse through a wide variety of coverages and find the right one for you.

Learn More
Contractors Icon

Contractors

We browse through a wide variety of coverages and find the right one for you.

Learn More
Home Icon

Home

We browse through a wide variety of coverages and find the right one for you.

Learn More
Auto Icon

Auto

We browse through a wide variety of coverages and find the right one for you.

Learn More
Life Icon

Life

We browse through a wide variety of coverages and find the right one for you.

Learn More
Home > Blog > The Importance of Giving Executives D&O Insurance Coverage
WEDNESDAY, APRIL 18, 2018

The Importance of Giving Executives D&O Insurance Coverage

Board of executivesCEOs, presidents, boards and other officials are often the public faces of a business. These individuals or groups often have a lot of ways to decide the course of the organization. Many important choices rest on their decisions. As a result, their actions can extend far beyond the boardroom.

So, what happens when company actors make decisions or mistakes that harm clients? The clients might feel they need certain monetary compensation. They might hold both the company and the directors responsible for these actions. Under such conditions, a directors and officers (D&O) liability policy might come in handy.

What is D&O Insurance?

Let’s say that during an earnings meeting, a company’s CFO informs stockholders of projected growth. However, rather than seeing gains in the next quarter, things go south. Poor stock performance causes financial losses for the shareholders. They might claim that the directors misrepresented their confidence in stock performance. So, the investors decide to take action, and sue the company and directors for these mistakes.

Here’s where D&O insurance can come in handy. It can extend liability protection specifically to the risks posed by officers. Therefore, if the directors and officers take a hit, this coverage can protect them. It might help them settle with the affected parties, as well as cover resulting legal fees. By extension, these policies can also protect the company. Businesses might not have to shell out profits in order to settle the damage. This might prove critical to protecting the company’s bottom line.

Protect Your Company Leaders, and Make the Company Better

It’s somewhat easy to see why company directors need the security of D&O insurance. Most professionals want to protect themselves in case they make mistakes. They like to see a company that will protect them in case of unfortunate mistakes.

When companies offer this coverage, they might actually see an increase in their ability to retain talent. As a result, D&O coverage can help improve a company’s overall reputation. It might serve as a catalyst to make the company more trustworthy.

The impact of D&O insurance on a company’s ability to grow and change might prove beneficial. Clients might feel more secure investing in or receiving services from the company. Therefore, you should use it as a tool to improve the company’s profile. Don’t go without D&O insurance. It could prove very beneficial to your company down the road. Contact us to get a Dallas business insurance quote at 972.234.5588.

Posted 12:20 PM

Tags: insurance, directors and officers insurance, business owners, commercial insurance,
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013

  • insurance(79)
  • dallas(68)
  • texas(45)
  • commercial insurance(26)
  • business owners(22)
  • commercial auto insurance(13)
  • business insurance(12)
  • contractors(12)
  • general liability insurance(10)
  • builders risk insurance(10)
  • business owners policy(9)
  • jim porter(9)
  • insurance tips(8)
  • surety bonds(7)
  • workers compensation(7)
  • bop(7)
  • workers compensation insurance(6)
  • coverage(6)
  • bonds(6)
  • business(6)
  • umbrella insurance(5)
  • fort worth(5)
  • home insurance(5)
  • homeowners(4)
  • contractors insurance(4)
  • professional liability insurance(4)
  • commercial(4)
  • policy(3)
  • directors and officers insurance(3)
  • homeowners insurance(3)
  • e and o insurance(3)
  • liability insurance(3)
  • car insurance(3)
  • workers(2)
  • liability(2)
  • auto insurance(2)
  • risk(2)
  • cyber liability insurance(2)
  • owners(2)
  • construction(2)
  • plano(2)
  • compensation(2)
  • personal insurance(2)
  • independent insurance agent(2)
  • inclement weather(2)
  • water damage(2)
  • claims(2)
  • auto(2)
  • d&o insurance(2)
  • safety features(2)

View Mobile Version

Contact Us Today!
972-234-5588

Social Social Social Social Social

Resources

  • Products
  • Customer Service
  • Payment Options
  • Report a Claim
  • News
  • About Us
  • Refer A Friend
  • Our Carriers
  • Blog
  • Contact Us

Contact Us

12160 Abrams Rd, #107
Dallas, TX 75243

Local: 972.234.5588 | Toll Free: 888.246.9291 | F: 972.234.5311
© Copyright. All rights reserved. | Powered by Insurance Website Builder