Essential Component Of Corporate Liability Insurance Policy
Directors and Officers Insurance is considered an essential component of a comprehensive corporate liability insurance policy. It also makes a business look more attractive to potential managers and executives, which is why many businesses purchase it themselves. Some countries don’t allow for this, leaving the directors and officers themselves responsible for their own coverage. Whatever the particular national arrangement might be, corporate executives do not want to be left without this exceptionally valuable type of insurance.
Directors and officers are at their best when they can take strategic risks without inheriting excessive liability. This is the principle, which lies at the core of D & O liability insurance. It is important to know that D & O insurance does not serve, in any way, as consent or cover for anyone to engage in acts which they know to be questionable or wrong. Such a misunderstanding should be firmly put to rest at a corporate level before directors and officers liability insurance is ever implemented.
While Directors & Officers insurance is not an excuse, it is definitely protection. Executives need this protection in order to make those crucial executive decisions. Despite reports to the contrary, corporate executives have never been under the microscope as much as they have been in recent years. The litigious society we live in has only emphasized the need for this coverage.