Directors & Officers Insurance
Directors & Officers Insurance – Los Angeles, California
What Is Directors & Officers Insurance?
Are you wondering if your business needs to be protected by D & O insurance? Ipex Insurance is a premier provider of California Directors and Officers (D&O) insurance across the country.
Many businesses battle this question on a daily basis. Law suits against large companies and their officers is alarming, but it doesn’t shock owners of small businesses. However, it seems to affect the small businesses on a much larger scale. We have written below some information you will find handy to make an informed coverage decision on your Directors and Officers Insurance.
Should your business have D&O coverage?
When you are a director or officer of a corporation or large company, your personal assets are at risk. You could be sued personally for decisions that you make on behalf of the company. If your answer is “yes” to any of the questions listed below, your company should definitely consider having D&O insurance.
Here are some things that could be covered by Directors & Officers Insurance
- Do you have board members outside of your company?
- Are you finding board members reluctant to serve because of potential personal legal liability exposure?
- Do you have outside shareholders?
- Is your company undergoing a change in control, such as a merger, acquisition and restructure?
- Do you anticipate an initial public offering?
- Do you borrow money?
- Is your company subject to governmental regulation?
- Are you publicly owned?
Why Private Companies Should Consider Buying D&O Liability Coverage?
- Cost of defending corporate lawsuits may exceed the net worth of most private companies;
- Judgments can be financially crippling;
- Corporate indemnification may not be available;
- Adverse shareholders and other potential claimants may exist;
- Bad business decisions are likely to be more visible due to small business environment thus attracting the attention of shareholders, regulators and others;
- Business decisions made by D&O’s can quickly impact the finances and operations of a company;
- D&O’s work in demanding environments as they cover more corporate duties;
- Unique conflicts of interest may exist due to complexity of responsibilities; and
- Companies will have a difficult time attracting qualified individuals to their Boards without D&O coverage.
