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Are You Making Decisions for Your Company? Then You Have a D&O Liability.

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Are You Making Decisions for Your Company? Then You Have a D&O Liability.

If you remember only one thing today, it should be this: don’t assume that your organization doesn’t need Directors and Officers (D&O) Liability insurance just because you don’t have stockholders.

Any organization that has business relationships with customers and third-party suppliers is open to a D&O lawsuit. Organizations that are subject to regulatory oversight or have competitors or lenders can also face D&O-related exposures. Simply stated, all companies have a D&O liability exposure; the risk is universal.

In today’s business environment, where laws and regulations are always changing, your organization and its leadership constantly face new exposures. D&O insurance protects the personal assets of the leaders who make decisions that affect the organization and its employees and partners — while also protecting the company’s balance sheet and brand.

Here’s what Directors and Officers liability insurance covers:

     Directors, officers, leadership and employees for monetary judgements and settlements for negligence or breach of duty, loyalty or care to the organization

     Claims made for civil, criminal, judicial, administrative, and regulatory or arbitration proceedings and investigations

     Breach of fiduciary duty, failure to exercise due care and employment-related suits that allege harassment, discrimination or wrongful termination

When considering Directors and Officers Liability insurance, it is key to make informed decisions based on your organization’s risk profile, industry and size. Consider the following before you buy.

Set program limits that are acceptable and sustainable to your company’s risk profile.

     Leverage benchmark studies of companies with similar profiles to gain valuable information on what your limits should be

     If your company is publicly-traded, review market capitalization changes that can indicate how investors could lose financial investments

     Prepare strategies to reduce exposure to employment practices-related claims; these are a leading source of loss for private company D&O policies


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HUB International
HUB International
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HUB International was born in 1998 with the merger of 11 privately held insurance brokerages. That number has grown to include more than 400 integrated brokerages across North America. Today, HUB is one of the largest insurance brokers in the world. Our network is broad, deep, and represents a one-of-a-kind aggregation of insurance entrepreneurs with a deep knowledge of the big issues you’re facing right now—and those that will affect you in the future. Get the latest business insurance insights.