A data breach can be a devastating event, affecting a company financially and damaging its reputation with customers. But as a director or officer at your company, you face litigation risks based on the decisions you make following a breach and on how you influence cyber security policies, as these are often considered board-level issues.
With today’s emphasis on corporate transparency and accountability, an organization’s directors and officers face a countless number of exposures. Regardless of your company’s size or mission, the legal costs associated with a lawsuit can be devastating for both the organization and your directors and officers.
While standard directors and officers (D&O) policies are designed to protect a wide array of risks, they have their limits. Coverage extensions are used to address these limits, fill gaps and provide organizations with additional protections outside the scope of traditional D&O agreements.
For an organization with many internal and external risks, protecting its directors and officers can feel like an uphill battle. While these risks are serious, companies can rest assured that they aren’t without recourse. There are a number of strategies organizations can implement today that will protect their leadership team well into the future.
Regardless of your company’s size or mission, the legal costs associated with a D&O lawsuit can be crippling for both an organization and its leadership. To complicate matters, D&O liability can come from a variety of sources, and claims can arise without warning.
In order to understand the benefits of D&O insurance, we must first examine the responsibilities of directors and officers.
Part 3 of our Directors and Officers (D&O) Glossary is the last of this series where we take a look at the most common terms used in insurance policies to help provide some clarity to your coverage options.
In part 2 of our Directors and Officers (D&O) Glossary, we take a look at the most common terms used in insurance policies to help provide some clarity to your coverage options.
Directors and officers (D&O) insurance can be confusing. Policies often contain a variety of terms that can be difficult to understand, especially for someone without an insurance background. Understanding what’s in your D&O policy is critical, particularly during the underwriting or renewal process. Prior to meeting with your broker, it’s important for policyholders to review their coverage and exposures. That way, they can come to their broker with specific questions regarding their policy and coverage options.