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Also commonly referred to as D&O liability insurance for short, directors and officers liability insurance is a type of policy that protects those who serve as business directors or officers from personal losses in the event that they are sued. This is true if they are sued by not only that business' employees, but also vendors, customers, or any other parties as well.
This type of insurance policy is important because of the sheer volume of D&O exposures that even an average-sized business is vulnerable to. This can include not only litigation resulting from securities-related issues, but also regulatory actions, breaches of fiduciary duty, allegations of misrepresentation, and more.
In a larger sense, directors’ and officers’ liability insurance can help build out a well-rounded risk management strategy for your organization. It can not only help attract top-tier candidates to be executives, officers, and other board members, but it can go a long way towards helping to retain them as well.
While the specifics of all policies will vary slightly depending on the provider you choose to go with, most cover not only defense costs associated with a lawsuit, but also settlements, and other financial costs tied to any allegations of a wrongful act and the resulting lawsuit.

Other examples of the types of situations that are covered under a directors and officers liability insurance policy include accusations of mismanaged funds, serious grievances that are filed by employees, instances of slander, libel, and even copyright infringement.
Naturally, failing to comply with mandatory regulations - either intentionally or unintentionally - can come with some fairly significant fines at a bare minimum. Directors and officers' liability insurance coverage can help protect against that, too.
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In no uncertain terms: any organization with a board of directors should have a directors and officers liability insurance policy at the heart of their risk management strategy. This includes private companies, public organizations, and even financial institutions.
We live in a world where claims against a company and its directors are increasingly common and D&O insurance is intended to help avoid the often massive expenses related to this type of litigation as much as possible.
Allow BIS to aggressively shop the market to get you the most competitive rates.
At BIS Benefits, we pledge to always offer innovative and creative insurance solutions to businesses of all types, no matter what. In addition to making sure that total client satisfaction is a foregone conclusion, we also want to become a trusted advisor to you and your people whenever possible. We want to help you focus less on insurance, so you can focus more on running the most successful business you can, precisely the way it should be.
If you'd like to find out more information about directors' and officers' liability insurance, or if you'd like to make sure
your own business is protected but aren't sure where to begin, contact the team at BIS Benefits today to
request your free quote.
BIS Benefits works with companies all around the state of Georgia, below are some of the cities our clients are located in:
Business Insurance, Group Plans, and Employee Benefits? We're here to help! Our team is friendly, knowledgeable - and ready to answer your questions or put together a custom quote for your exact requirements. Contact us today!