When it comes to a business, no insurance coverage is too small or too superfluous. One insurance coverage that is important for any medium to large business is Directors and Officers insurance. While a policy that is this specific might not sound like the right investment here are some d&o claim examples that could very easily occur to any business, according to https://www.axisins.com.
One situation that can occur is that the company director leaks information regarding an exciting new product that the company is developing. That information is then used by another company to create a similar product and shareholders lose out the potential profit. Shareholders can then sue the company or the director for loss of profit.
Another scenario is that a director or officer fails to disclose information regarding insurance benefits or gives employees the wrong information. Employees can technically sue this member of upper management personnel. That is when d&o insurance can come very much in handy.
Failure to Adhere to Law
Let’s say the director of a company hires a minor in a position. However, the state in which this minor is hired has a strict curfew in which minors are not allowed to work after a certain time of night. If that director places this minor on the company schedule after this curfew, a lawsuit can be filed.
These are just a few of the many d&o claim examples that insurance agencies frequently see. Protect your business with a strong Director and Officers insurance policy.