In today’s world of corporate transparency and accountability, there is always a chance that a business, regardless of its size, could face a lawsuit arising from the management decisions of its directors and officers. Organizations’ directors and officers are exposed to a myriad of employment-related risks, and the legal cost to defend a director is substantial, rendering directors and officers insurance (D&O insurance) crucial.
What is Directors’ and Officers’ Insurance?
Unlike commercial general liability insurance, which provides coverage for claims arising from bodily injury and property damage, a directors’ and officers’ insurance policy provides coverage for a “wrongful act,” such as an actual or alleged error, omission, neglect, misleading statement, or breach of duty. This type of policy provides defense costs and indemnity coverage to the entity listed on the policy, which may include:
- Coverage for individual officers and directors
- Protection for the organization or entity itself
- Reimbursement to the business for a contractual obligation to indemnify directors and officers who serve on the board.
There are many endorsements available to help you customize your D&O insurance coverage to best suit your company’s exposures, such as adding on employment practices liability insurance and/or fiduciary liability protection. On the other hand, one typical exclusion in a D&O policy is fraud, meaning that coverage will not be provided for losses resulting from dishonest or fraudulent acts or omissions, or willful violations of any statute, rule or law.
Regardless of your business’s size and type, directors and officers at every organization can make costly mistakes – both financially and in terms of potential personal penalties incurred. For this reason, D&O insurance represents a crucial aspect of every company’s comprehensive risk management strategy. Considering that there’s no such thing as a “standard” D&O insurance policy, working with an independent insurance agent to secure this type of coverage proves invaluable. As your agent, we will take the time to understand your organization and its unique exposures, and custom craft coverage with policy language that will provide full protection.
If you’re looking for D&O insurance in New Hampshire, rely on the agents at Eaton & Berube, who have been protecting New Hampshire businesses for more than 70 years. In addition to Nashua where our office is located, we are pleased to provide directors’ and officers’ insurance in Hudson, Hollis, Brookline, Litchfield, Amherst, Merrimack, Milford, Bedford, Manchester, Concord, Goffstown, Derry, Salem, Londonderry, Windham, Wilton, Mont Vernon, and all of New Hampshire.
To get a free New Hampshire directors’ and officers’ insurance quote, please call us today at 603-882-2766 or submit our online quote request form.