D&O Insurance Coverage Details
Directors and Officers Insurance, commonly referred to as D&O Insurance, is a specialized liability insurance policy designed to protect the personal assets of individuals who serve as directors and officers of a corporation. The primary purpose of D&O insurance is to safeguard these leaders from personal financial loss in case they are sued for alleged wrongful acts committed while managing the company.
D&O insurance is critical because, in today's litigious business environment, directors and officers can face personal liability for decisions made on behalf of the organization. These decisions may include strategic choices, financial decisions, compliance matters, employment practices, or issues related to corporate governance.
In today's business environment, leaders face legal responsibilities and potential liabilities. From breach of fiduciary duty to securities fraud, allegations can put directors and officers in difficult positions. HWP Insurance offers Directors and Officers (D&O) insurance tailored to their unique needs.
Directors and Officers (D&O) insurance offers comprehensive protection with three key coverage components:
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This component provides crucial protection to individual directors and officers when the company cannot indemnify them. It covers legal expenses, settlements, and judgments, safeguarding their personal assets.
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Side B coverage is designed to reimburse the company for indemnification payments made to directors and officers, helping the organization manage its financial responsibilities.
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Also known as "entity coverage," this component is focused on shielding the company itself from certain claims, particularly those related to securities litigation, further bolstering your organization's resilience.