Senior leadership have a great deal of issues competing for their attention: everything from the basics such as improving profitability in a challenging economy, succession planning, attracting and retaining quality employees, and reducing costs of doing business, to newer issues such as encouraging inclusion and diversity in the office, embracing ecology-friendly measures such as going paperless and reducing reliance on chemicals or excess packaging, and more. Add to this the ever-increasing liability risk in a marketplace in which directors and officers for public companies must contend with closer scrutiny and new exposures every day and you’re facing a maelstrom of critical decisions at every turn.
Sometimes the leaders need a leader
The good news is that from a risk management standpoint, leadership can themselves seek guidance from a professional insurance agent, who has the kind of expertise and experience to help them navigate the landscape with a comprehensive package of coverage that addresses the need for protection as well as affordability. Expert advice is essential here, as this important and complex policy is no “do it yourself” kind of purchase. The idea that the company’s leaders could be held personally liable for damages and expenses in the event of a lawsuit, resulting in crippling financial loss-and half of all claims made against directors and officers of public companies are made by their shareholders-actually has an increasing number of savvy executives these days making such coverage a condition of their employment.
The policy offers protection for these executives in the event they are accused of wrongful conduct in the course of doing business, paying for the often substantial costs for legal defense, investigation, negotiation, and settlement. Many policies for public companies today often include protection for the company itself, and others such as non-executive directors and managers may be covered.
Turn to an expert to navigate this complex coverage
To learn more about the specifics of directors and officers insurance for public companies and how best it can be applied to the exposures that your leadership and company face, contact your professional insurance agent today. He or she will be glad to tailor a comprehensive plan expressly for your organization.