Six Good Reasons for Directors & Officers Liability Insurance
Are you uncertain if Directors and Officers Liability Insurance is necessary?
Are you prepared to be held personally liable (that means your own personal assets are at stake) for the decisions you and your fellow board members make on behalf of the organization whether or not you were involved in the decision?
If you are still uncertain, here are six good reasons for board members to have Directors and Officers Liability Insurance:
Directors can be held personally liable for false or misleading reports, and for the failure to verify facts in official documents.
5. WRONGFUL DISMISSAL
Directors can be held personally liable for the costs associated with a wrongful dismissal action.
Directors can be held personally responsible for acts of discrimination against others because of their race, age or sex.
3. WRONGFUL ACTS
Directors can be held personally liable for wrongful acts or omissions committed in the performance of their duties.
2. LOSS AND WASTE
Directors can be held personally liable for failure to properly protect the assets of the organization resulting in a loss (such as failing to obtain proper insurance coverage!) or for incorrect decisions that result in a loss or waste.
1. ACTS OF OTHERS
Directors can be held jointly liable for the acts committed by other directors, even if they weren’t present for the meetings.