DO Insurance – How a Small Business Heads Off Big Trouble

Directors and officers liability insurance is designed to protect the senior leadership of a business from management-related lawsuits. This coverage, often called D and O insurance, complements the protection that professional liability insurance offers to salaried and hourly workers. While D&O’s name conjures images of ornate boardrooms and corporate titans, this coverage is just as vital for small companies.

Why D&O Is Essential for a Small Business

In a small venture, senior management is more likely to have hands-on involvement with a wide range of activities. More activity means more accountability, and more accountability leads to more lawsuit exposure. Furthermore, senior executives may well have a large amount of their wealth invested in their enterprises. Without the backstop offered by D&O insurance, a lawsuit could devastate company leaders and their families alike.

How D&O Aids in Talent Recruitment

Avoiding disaster is not the only D&O policy benefit. A startup company gains credibility and valuable advice with a strong board of directors. A director candidate with the experience to help a young company is also savvy enough to insist on adequate D&O coverage before taking a board seat.

D&O coverage can help a small business mature into a thriving enterprise. To achieve that success, an insurance agency with a track record of serving small businesses is a valuable partner.