The actions of a business director or officer are frequently under examination. Without the support provided by D&O insurance, he or she could financially suffer due to the results of a lawsuit. No business is exempt from this unfortunate possibility, and each one should acquire this type of insurance for purposes of protection.
Security for Both Large and Small Businesses
Most people think that D&O insurance is for large public companies, but this is simply not the case. While privately owned businesses do not have the same level of exposure as public ones, there is still a chance that directors or officers could be sued on a personal level. They can be held accountable for any of their actions, and they are vulnerable in more ways than one. Everything depends on a business’ relationship with vendors and customers, and it is quite easy for such interactions to turn hostile.
Executives Should Be Aware of Available Opportunities
Many executives also assume that this type of insurance is only available to larger businesses. With some research, though, they would realize that there are policies set aside for the express purpose of assisting the directors and officers of small companies. There are many opportunities available to people, and it would be foolish to not take advantage of them. D&O insurance is meant for businesses of any size, and it provides needed protection in the event of a lawsuit.