Directors and Officers Liability Insurance protects directors and officers of corporations or not-for-profit organizations if there is a lawsuit claiming they managed the business or organization without proper regard for the rights of others. The policy will pay any judgment for which the insured is legally liable, up to the policy limit. It also provides for legal defense costs, which can be substantial even where there has been no wrongdoing.

Top 5 Reasons for D&O Coverage:

1. Directors and Officers can be held personally liable for claims; organizations increasingly consider personal liability coverages as one of the most important aspects of the D&O program.

2. D&O Liability claims related to regulatory actions are increasing for all types of organizations; representing 23% of claims in 2012.

3. Directors and Officers increasingly desire additional assurances beyond corporate indemnification-43% desire added protection in the event their company becomes bankrupt and/or insolvent.

4. Directors & Officers and their respective organizations are susceptible to a wide range of claimants including shareholders, competitors, customers, employees and government entities.

5. D&O Claims are increasingly common for private companies, public companies and nonprofits: 36% of all organizations reported claims in the last 10 years.

Contact Southern Insurance Associates about D&O coverage at 706-996-8788 or Info [at] SouthernInsuranceAssociates [dot] com