Directors of an organization are often on the front lines when it comes to being exposed to lawsuits and legal claims. When the organization is not in a position to bear the burdens of those risks, directors insurance is essential. There are several things to discuss with an insurance agency before taking out a policy.
Will I Be Protected When a Fellow Officer is Accused of Wrongdoing?
It’s important to find out if a policy would protect you if you’re innocent but another officer is accused of doing something wrong. It’s best to get a plan that protects you no matter what the other officers allegedly do.
Are Employee-Related Claims Covered?
There may be cases where disgruntled employees or past employees sue for things like wrongful termination or harassment. It’s sometimes necessary to get supplementary coverage if you need protection against legal problems that relate to employees. Be sure you understand the specifics before choosing a type of directors insurance.
What Can I Expect to Pay for Coverage?
Premium rates for this type of coverage vary based on whether you have had past legal claims, the type of company with which you’re associated and whether you are in debt. An agent can evaluate your situation and will give you the best rate available.
These are just a few things to bring up before getting directors insurance, but the answers you get should bring peace of mind.