If, like many companies, you are concerned about the possibility of a large liability claim, the answer may be, “Yes.” Litigation against company directors and officers may carry a financially destructive price tag that could endanger your company’s long-term viability. However, Directors and Officers (D&O) insurance may help provide a safeguard against any potential lawsuits brought by employees, competitors, customers, stockholders, or other third parties.

Typically, D&O insurance tends to be fairly comprehensive. Policies generally provide coverage for judgments, settlements, and legal costs resulting from “wrongful acts,” such as mismanagement, misleading statements, or breach of duty.

In today’s increasingly litigious business environment, few companies are impervious to liability claims that may be filed against them. Therefore, D&O insurance may offer an affordable means of security for many companies, including small, privately-held, or family-owned operations.

Consider taking steps now to speak with a qualified insurance professional who can help provide assistance in evaluating your company’s needs and structuring the appropriate D&O coverage to protect your business.