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Do I need Directors and Officers (D&O) coverage for my business?

Regardless of the size of your business or whether it is private or publically traded, it is wise to consider adding directors and officers (D&O) coverage to your business insurance coverages. Directors and officers coverage is a type of liability insurance that protects corporate directors and officers if they are personally sued by employees, vendors, customers, or investors. It will cover the costs of the directors’ and officers’ personal legal fees and settlements, and sometimes extends to cover the company in certain situations. Without having D&O coverage, your directors’ and officers’ personal assets are exposed and in jeopardy of being lost if a loss occurs. Typical losses where D&O coverage is important include misuse of company funds, failure to comply with workplaces laws, and corporate governance issues. Your local independent insurance agent is your trusted adviser when it comes to protecting your business's directors and officers from personal financial loss. As a trusted advisor, your agent will review the fine print of your insurance policies with you and make sure you have the coverages you need.