Directors & Officers Coverage For Your Tennessee Company

If your for-profit or not-for-profit company is, or ever has been, helmed by directors or officers, you may want to consider directors and officers liability insurance to protect the personal assets of your executive team.

Oftentimes investors will require that your company carry directors and officers insurance before they’ll agree to fund you. Members of a company’s board of directors may also request this coverage, so as not to risk their personal assets.

This type of coverage is designed to protect a company from damages that could result from alleged or wrongful acts that a director or officer committed while in their position. These acts could include:

  • errors
  • misstatements
  • neglect
  • omissions
  • misleading statements
  • or breaches of duty

This coverage is similar to the errors and omissions coverage, which is also offered by Elite Insurance Solutions, except that errors and omissions insurance is for employees and regards products and services, while directors and officers coverage extends the same protection to the executive team and regards performance failures and negligence. Both types of insurance allow room for mistakes, which is generally a good thing to make room for, since we all make them from time to time.

Do I Need Directors & Officers Coverage?

If yours is a publicly traded company with a corporate board of directors or an advisory committee, you should consider directors and officers liability coverage. Nonprofit organizations and private companies may also benefit from this coverage.

Many companies find directors and officers coverage indispensable, as top executives can be held personally responsible for a company’s acts. Directors and officers coverage will address claims made by employees, clients, and stockholders, and may protect a director or officer from criminal, administrative, civil, and regulatory proceedings.

What Does Directors & Officers Liability Insurance Cover?

We find that there are often misunderstandings about what Directors & Officers liability insurance covers. While we are more than happy to answer your questions personally, here are the basics:

Directors and officers liability insurance does cover…

  • Defense expenses
  • Financial damages or settlements

Directors and officers liability insurance does not cover…

  • Wages
  • Fines
  • Taxes
  • Penalties
  • Multiplied damages

Whatever type of insurance you need, the experts at Elite Insurance Solutions can help you make sure that you’re covered and protected. For more information or to discuss your company’s needs, visit our Locations & Contact page and find the Tennessee location and agent nearest you.

 

Depending on the type of business you run, you might benefit from having errors and omissions liability insurance. Ask us about what this business insurance could do for you.

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“Brian, Again, having you involved with our insurance needs has been a blessing. I never would have thought we needed an agent until the first time I spoke with you. You are great at keeping us informed, and I don't think you could possibly know how much of a relief it is to know that someone is helping us with all of our issues.” – Kevin Courville