Why D&O Insurance Is Critical for Protecting Your Leadership Team

ARTICLE | August 30, 2024

Authored by Vasquez + Company

Corporate litigation is an ongoing risk for businesses, and Directors & Officers (D&O) liability insurance is a vital tool to protect executives from personal liability in lawsuits. The article "Protect Execs With D&O Insurance" outlines the key benefits of D&O insurance, how it works, and its importance in mitigating risk and attracting top talent. Companies are encouraged to review or secure D&O coverage to ensure they’re adequately protected as they grow.

Key Points

• Coverage Overview: D&O insurance offers financial protection for directors and officers against claims arising from their organizational decisions.
• Recruitment Tool: D&O insurance is essential for attracting and retaining top executives who are unwilling to risk personal liability.
• Policy Considerations: The size, industry, and shareholder composition of a company influence the terms, limits, and costs of D&O policies.
• Best Practices: Companies should periodically review their D&O policies, especially after significant organizational changes or increased litigation in their industry.

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