In the wake of the numerous corporate scandals which have struck the business world–including WorldCom, Enron, and many others–the corporate legal environment has changed. Increasingly, directors and officers are being held personally responsible for poor company management decisions. Directors and Officers Liability insurance, commonly known as D and O insurance, can help protect the people who manage the affairs of your business from financial harm in the event of any number of contingencies or allegations.
Personal negligence pierces corporate shells, thereby exposing the personal assets of those who work as directors or officers to liability from the conduct of their business. However, not all D and O coverage is created equal. Common problems with the coverage include work performed for outside boards (not for profit and for profit), punitive damages, claims brought outside the United States, and innocent insured coverage–to name but a few. What’s more, defense against D and O liability claims can cost upwards of several thousands of dollars–even for minor cases. So where can you turn for solid, comprehensive D&O coverage?
Axis Insurance Services can help you discover a myriad of options for Directors and Officers Liability Insurance. We maintain great relationships with insurance carriers of all types, and one of our licensed representatives can go over your contract to help you acquire ideal D and O coverage. You could try calling carriers directly, but your end policy might exclude coverages that are important to you.
For instance, if your corporate bylaws are written in such a way that they fail to indemnify your directors and officers, your business may be under no obligation under the law or in a D&O policy to provide liability defense. Thus, even though your company technically has a Directors and Officers Liability insurance policy, the people you’re trying to shield might not be protected. Axis Insurance Services can advise against such gaps in coverage.