Directors and Officers Liability Insurance
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D & O Insurance protects personal assets of executives from business related legal action

If you do not have D & O, your C-Suite will be individually named in most business lawsuits

Protect your Directors and Officers by providing legal defense funds for them individually when the business faces suits
Directors and officers liability insurance, also abbreviated as D&O insurance, protects individual business members from personal losses if they face legal action related to their senior management role within that business.
Various organizations, including for-profit companies and nonprofits, can take out D&O liability coverage.
One of the most important business insurances to consider is one that protects the directors and officers personal assets.
What Is Directors and Officers Liability Insurance and What Does It Cover?
Directors and Officers Liability insurance is important to consider if you are Director, officer or board member of a business.
The D & O insurance policy protects you personally from financial loss if you are implicated in a business related lawsuit.
Many times when a lawsuit if filed against a corporation, the C-Suite members and others high ranking officers will also be named individually in the lawsuit.
Don't get your business blackmailed into a crummy legal settlement because you don't have Directors & Officers Liability Insurance.
Mark Huntley // Attorney
This means that if you do not have Directors and Officers Liability Insurance than you will be personally responsible for paying your attorney's fees to defend yourself, individually, in the business lawsuit.
Lawyers use this tactic against corporations that do not have D & O Insurance, or smaller policies, because the directors must pay for their personal defense out of their own money.

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This causes them to be more amendable to a quick 'business' settlement in return for all the other lawsuits being dismissed.
"Don't get your business blackmailed into a crummy legal settlement by not having D & O Insurance," warned Mark Huntley, J.D.
If your company is sued for negligence—such as, for manufacturing a faulty product that caused consumers injuries.
Senior leaders, including directors and officers, may also be targeted for alleged negligence as part of a lawsuit.
And if you don't have D & O insurance I can almost guarantee every director and officer will be named in that lawsuit, regardless, of how frivolous it is.
Actually, probably the more frivolous the lawsuit, the more people in the company will be named in that lawsuit.

insurance terms explained:
Independent Insurance Agency: You can buy insurance from an indendent agency but they represent other companies (typically several). For example, an independent agent who works for Acme Insurance Agency might sell you an auto insurance policy insured by Travelers Insurance.
A directors and officers plan will help protect these individuals from any personal liability and let you fight that lawsuit head on without worry of losing your personal home or savings.
A D&O policy can also cover related legal costs resulting from such claims.
This can save a lot of money, given the high price of competent legal commercial business defense (with a single lawyer's hourly fees often starting at $350 or more).
The D&O policy can cover legal protection in criminal and civil cases, which individuals may sometimes file simultaneously.
Note that most D&O policies do not cover fraudulent actions or criminal offenses.
For example, if a director is accused of sexual harassment, the D&O policy is unlikely to apply.
In this case, the individual will have to cover their attorney's fees.
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What Types of Businesses Need Directors and Officers Liability Insurance?
If your business is an established legal entity with defined directors and officers (for example, as outlined in a formal operating agreement), you can take advantage of D & O insurance.
Nonprofits, corporations, limited liability companies, and partnerships may all benefit.
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