Directors and Officers Liability Insurance in Raleigh-Durham, NC

Protect Your Business with a Trusted Barber Insurance Expert Policy

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Directors and Officers Liability Insurance: The Essentials

Reliable and Experience D&O Coverage In Raleigh, North Carolina

Directors and officers liability insurance in Raleigh, North Carolina, otherwise known as D&O insurance, protects company heads from personal financial risk if they are involved with company-related lawsuits. D&O coverage helps mitigate personal losses due to legal battles, investigations, or other claims brought against them for their role, communication, or decisions made while acting as head of the company. D&O insurance is essential for companies seeking to protect their corporate leaders from legal repercussions.

Leaders may be held responsible for business shortcomings; however, insurance of this nature supports the accused as long as their actions are not illegal. Typical plaintiffs include employees, vendors, competitors, and investors. For companies in North Carolina, it is an important safety net to ease the fallout of alleged wrongful acts carried out by anyone in a leadership position. Most investors and CEOs are going to insist that large companies have coverage for directors and officers; however, it is not just for large companies. Businesses of all sizes can benefit from insurance that protects those in charge. This is because lawsuits may arise from several situations, including:

  • Breach of Trust
  • Misrepresentation of Assets
  • Misuse of Funds
  • Noncompliance with workplace law
  • Lack of Company Leadership
  • Intellectual Theft

Keep reading to learn which companies can benefit the most from D&O insurance.

Every company faces the risk of litigation, not just large corporations. Public, private, and even non-profit organizations face this risk and could benefit from insurance to protect their officers and board of directors. Any company with advisors or a board of trustees should consider obtaining liability insurance for directors and officers.

Consider these questions when deciding if your company might benefit from D&O insurance.

  1. Is it publicly traded?
  2. Does it have a board of directors?
  3. Are there private investors?
  4. Do executive-level positions require top talent?
  5. Do the contracts include indemnification clauses, meaning the company promises to cover the financial obligations of a lawsuit against an executive?

D&O liability insurance is a particular kind of insurance. Therefore, it is most beneficial to speak directly with a Barber Insurance agent or a qualified attorney before deciding to proceed with coverage.

Having the right coverage is more important than having coverage. Understanding the difference between D&O insurance and professional E&O liability insurance is divided by a fine line. The two are similar; however, D&Os are primarily for high-level executives. The most considerable difference is that D&O policies protect the executive and their personal finances, while the E&O policies protect professionals from claims against their services.

What is Covered by Directors and Officers Liability Insurance

Easy to Understand D&O Liability Coverage from Barber Insurance

Directors and officers liability insurance policies are particular, so it is especially important with this contract that you are clear on what is covered. It will not replace workers’ compensation, general liability insurance, professional E&O coverage, or commercial auto insurance. D&O coverage is a specialized policy specifically covering the directors and executives in your company from lawsuits.

Most insurance companies include three segments of coverage in traditional D&O policies: A-Side, B-Side, and C-Side coverage.

  • A-side coverage protects directors, officers, and the occasional employee who holds a right to indemnification if the company can no longer comply, such as with bankruptcy.

  • B-side coverage protects the company if it must indemnify a director, officer, or employee.

  • C-side coverage protects the company as a whole from financial issues. It is also called entity coverage and often reduces the limits on how much protection the company can offer to individual directors and officers.

Directors’ and officers’ coverage depends on what risks your company will face and applies directly to your business needs. Common perils that companies in Raleigh, North Carolina, seek coverage for include:

  • Employment Lawsuit
  • Investment Lawsuit
  • Legal Mistakes
  • Client Data Breach

You should also be clear on what scenarios this policy will not cover.

  • Executives will not be covered for any illegal or fraudulent actions.
  • Policies are not retroactive, so claims beginning before the contract do not apply.
  • Claims covered under other agreements, such as bodily injury or property damage, have no claim.
  • Claims between two insured parties at the same company. This is also called insured-vs-insured.

  • Employee retirement and income security claims.

Other exclusions may apply, so for the most comprehensive idea of what would best benefit your company’s goals, it would be helpful to consult with a Barber insurance agent.

Comprehensive D&O Coverage You Can Count On

After 23 Years in Raleigh, North Carolina Insurance, We Have Expertise

At Barber Insurance, our staff of experienced and knowledgeable agents is here to help you understand the importance of directors and officers liability insurance. We know how critical it is to get it right when choosing an insurance policy for your business needs– especially with D&O policies. Our protection is comprehensive and tailored specifically for your Raleigh, North Carolina company so that you do not have to worry about mismanagement of financials, contract breaches, or failure to comply with regulations. The corporate world is cutthroat, so legal problems are not a question of if but when.

As residents of Wake County, we have earned a reputation in the Raleigh, North Carolina, community as experienced, knowledgeable, and genuinely helpful. We make it our mission to understand the full scope of your needs while guaranteeing the most competitive rates. At Barber Insurance, we understand the importance of insuring your directors and officers against liability claims, so we make it easy for you. Get in touch with us today to learn more about directors and officers liability insurance policies and how we can give your company and executives the confidence they need to fulfill their obligations.