Many of the design firms covered by DESIGNPRO Insurance Group maintain directors and officers coverage (D&O) in addition to general liability coverage and other business insurance. D&O policies insure the company against damages caused by the actions of executive officers and board members.
Directors and officers insurance is essential for publicly traded companies, non-profit organizations and any firm or contractor with a corporate board or advisory committee. The protection is so important that many stockholders demand that the companies in which they invest maintain a D&O policy. Additionally, design and engineering firms without director and officer coverage can have difficulty getting individuals to serve as board members.
D&O insurance helps offset the cost of wrongdoing by a board member or executive officer. Without this coverage, your firm could be held responsible for damages resulting from the actions of a current or former board member or officer. D&O coverage focuses on the actions and statements of executives and other leaders in an organization. While errors and omissions policies cover mistakes and negligence on the part of a skilled or licensed professional, directors and officers policies can protect a company if an executive is involved in criminal activities, makes a misstatement to the press or engages in other harmful endeavors.
In addition to protecting the insured contractors and firms, D&O insurance also provides personal protection for executives and board members acting on behalf of the company. Businesses without D&O insurance may require board members and executives to maintain personal liability coverage.
The risk managers at DESIGNPRO Insurance Group help firms and contractors find the right coverage for their needs. If you have questions about directors and officers insurance or our other commercial products, contact us today. Our agents will be happy to explain this type of policy in greater detail as well as review your current policy to make sure firm is properly protected.