DIRECTORS & OFFICERS LIABILITY INSURANCE (D&O)

Services for your Business
From 2001 to 2011… “21% of private companies’ respondents had a D&O claim come in, versus 69% of publicly traded companies. ” – 2011 Towers Watson Survey

WHAT IS IT?

  • “Directors and Officers Liability Insurance (AKA Errors and omissions insurance, E&O for short) is a type of commercial liability insurance covering directors and officers for claims made against them while serving on a board of directors and/or as an officer.”* It protects your business against claims arising from your negligent acts or your failure to provide the level of advice or service the plaintiff expected.
  • D&O Insurance is primarily intended for use by publicly owned companies to protect their Directors and Officers of the company from lawsuits.

WHAT IS COVERED?

  • Protects businesses against lawsuits for:
    • Public companies – Shareholders filing suit for financial difficulties, creditors, customers or clients and competitors.
    • Non-Profit companies – Generally related to employment actions and practices.
    • Private Company – Often brought on by competitors or customers for alleged fraudulent or deceptive practices.

DO I NEED IT?

  • On a case-by-case basis. It is worth a discussion with your insurance broker to see if your business is susceptible to a lawsuit for your company.
  • Lawsuits Are Not Cheap – $35,000 to $100,000 is the cost to defend a lawsuit. $475,000 was the average payment for an adverse judgement.

WHY CHOOSE ART RISK?

  • A BROAD SERVICES OFFERING– With a comprehensive approach toward the clients’ liability insurance, ART Risk takes the burden off the business having to manage multiple insurers/policies, letting them focus on what matters most… day-to-day business.
  • EXPERTISE– ART Risk’s knowledge to ensure valued clients are properly covered with a catered policy is the company’s highest priority.
  • STABLE OF INSURERS– ART Risk Financial & Insurance Solutions, Inc. obtains multiple quotes to ensure clients are properly covered and competitively priced.
  • QUICK TURNAROUND– Depending on the need, a quote can be provided in 48 hours after receiving all information requested and applications, giving clients the ability to choose and bind coverage within 72 hours of starting the process.

 

https://www.irmi.com/term/insurance-definitions/directors-and-officers-liability-insurance