Providing value, discipline, and insight.

Insurance Read Time: 2 min

Directors and Officers Liability Insurance

Liability insurance for directors and officers is not just for large public companies; it can be an equally valuable risk management tool for smaller businesses.

Directors and Officers (D&O) liability insurance helps protect directors and officers of public and private for-profit businesses of all sizes, as well as non-profit organizations, and educational institutions.

A D&O insurance policy provides financial protection for managers against claims arising from actual or alleged “wrongful acts” of directors and officers acting within the scope of their managerial duties. A D&O policy is designed to pay for defense costs and financial losses. It may also cover the costs associated with administrative and criminal proceedings and with investigations by regulators or criminal prosecutors.

D&O insurance is not designed to cover certain risks, such as those attached to fraud, intentionally bad acts, illegal remuneration, property damage and bodily harm, and pre-existing legal actions.

Primary D&O Risks

The risks confronting directors and officers are manifold, and may include:

  • Employment practices and other human-resource-related issues
  • Shareholder actions
  • Reporting errors
  • Inaccurate and inadequate disclosure
  • Failure to comply with laws or regulations
  • Decisions that exceed the authority of a company officer

D&O insurance is not just about protecting directors and officers against the financial risks that may arise from the decisions they make. A key benefit of having such protection is that it provides company officers and members of a company board with the room to make decisions with the knowledge that the risks attached are manageable and transparent.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

Healthcare Costs in Retirement

Healthcare Costs in Retirement

Without a solid approach, health care expenses may add up quickly and potentially alter your spending.

Medicare At 65+

Medicare At 65+

65 or older? It may be time to enroll in Medicare. Read to learn if you’re eligible.

Term vs. Permanent Life Insurance

Term vs. Permanent Life Insurance

When considering life insurance, it's important to understand your options.

The certification marks above are owned by Certified Financial Planner Board of Standards Inc. and are awarded to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Securities and Advisory services offered through LPL Financial. A registered investment advisor. Member FINRA/SIPC.

Investments products and Advisory services available only to residents of: AL, AZ, DC, FL, GA, KY, MT, NC, NH, OH, PA, SC, TN, TX, VA.

Licensed to sell insurance products in the following states: AZ, FL, GA, PA, SC.

Contact

Office: (478) 971-0774
Fax: (478) 971-0778

209 Independence Drive
Warner Robins, GA 31088

joy.hurst@lpl.com