No one wants to consider that their business decisions may result in losses for their company, but directors and officers of private companies take substantial risk every day, putting their livelihood at risk in order to further the business for which they work. They can obtain protection for themselves by purchasing an insurance policy for directors and officers for private companies, and rest easy knowing that they will be well-protected against legal action due to a miscalculation in a business decision.
Directors and Officers insurance is generally considered to be a perk of employment for those individuals at the top tier of a publicly-traded company, but that doesnt need to be the case. Directors and officers insurance can be purchased directly by the employee, rather than as a benefit that is purchased by the company. The requirement for purchase is usually that the insured by employed by a company that attains at least $500,000 in annual revenue, so most mid-sized business directors and officers will qualify. The policy will generally cover loss up to $10,000,000, depending on the specifics of the policy. Directors and officers of private companies should certainly speak to an insurance sales agent in order to ascertain the exact risks and liabilities of their particular industry, and ensure that they are neither over- nor under-insured.