Tom's Blog
If you have even been asked to serve as a board member for a Non-Profit Organization, you may consider how your participation in the many executive decisions could reinforce the success of the Non-Profit or improve areas that you feel need attention, but have you considered the legal challenges you may face if that Non-Profit organization does not have the right insurance in place? Before you say “yes”, find out if that Non-Profit has Directors and Officers (D&O) Insurance.
What is Directors and Officers (D&O) Insurance?
This type of insurance is typically purchased by the company itself and is designed to protect the directors and officers/executives from claims that may arise brought by employees, customers, or anyone else alleging wrongful acts during your work as a board member. Many directors and officers will want a company to provide D&O insurance, not wishing to financially expose their assets to the actions of the organization.
Some Reasons that Directors and Officers May Face Legal Action During Their Roles in the Business, but Not Limited to:
- Misrepresentation of company funds
- Fraud
- Failing to comply with workplace laws/standards/regulations
- Mishandling company funds
- Stealing competitors’ customers and/or data
- Breach of responsibility that results in financial loss
N.C. Business Solutions for All of Your Needs
Paramount Insurance Agency understands the business and insurance needs for your small business and can establish a package policy that offers multiple business solutions (including D&O) for all of your needs within a budget you can afford.
Whether your business is private, public, or non-profit, you may be exposed to risks and lawsuits that could expose your business to financial destruction if you don’t have the right type of business insurance, inclusive of D&O insurance. Even though your executive team works hard to promote the success of your business, mistakes can happen and the right business protection needs to be in place. Call us today at 866-869-3335 to discuss an enhanced management liability insurance policy for your N.C. small business so you can provide the protection that the leaders of your business deserve.
