Directors and Officers Liability Insurance in Katy, TX
Although your business’s leaders are among its most trusted members, even the most experienced and responsible decision-makers are not immune to errors and oversights. Given the pull and power directors and officers may have over an organization, even a slight miscalculation or isolated mistake could quickly amount to devastating financial consequences. In such situations, directors and officers (D&O) insurance can make all the difference.
D&O Coverage Explained 
As its name suggests, this type of insurance can provide specialized liability coverage specifically regarding actions and decisions made by your company’s senior leaders. Directors, officers, board members and executives can all be covered by a suitable D&O policy. While exact policy parameters may vary, you can generally receive financial aid for losses and expenses arising from the following:
- Fraud
- Breach of fiduciary duty leading to financial losses
- Misrepresentation of company assets
- Violation of workplace and employment laws
- Intellectual property theft
- Corporate governance failure
- Misuse of business funds
In response to the aforementioned incidents, your company’s employees, stockholders and other stakeholders could file a D&O lawsuit. Fortunately, your coverage could help manage resulting legal expenses and losses.
Who Is Covered?
A D&O insurance policy typically includes three types of coverage, each addressing potential costs and damages arising from lawsuits. Consider the following:
- Side A coverage can cover directors and officers in situations where the company is unable or unwilling to do so and may safeguard their personal assets.
- Side B coverage can assist in situations where an organization grants indemnification to a director or officer and can cover resulting legal expenses.
- Side C coverage, also known as entity coverage, can cover a business itself and its corporate assets if it’s named in a lawsuit and may be particularly important for publicly traded companies.
Do I Need a Policy?
Many businesses can benefit significantly from securing appropriate D&O coverage. These policies can cast a versatile and robust financial safety net across many common incidents that may impact businesses and nonprofit organizations. In addition to fortifying your financial security, this type of insurance may also prove critical in attracting and retaining top executives and leaders, as they may feel uncomfortable working for you without assurances.
We’re Here to Help
Contact Katy Insurance Agency today to learn more about D&O coverage and secure an appropriate policy.