In your Bakersfield medical facility, you most likely have a board of directors or a set of officers that help to run the company and direct the big decisions made. While you would like to think that those individuals wouldn’t be subject to being sued, that just isn’t the case. And this isn’t limited to just public companies. All companies, public, private, and non-profit are subject to these types of lawsuits.
And the size of the Ventura organization is also irrelevant. Both smaller and large organizations can be subject to these lawsuits. D&O insurance covers those personal assets of the employee and their spouse in the event that they are personally sued by employees, vendors, investors, competitors, customers, or other parties.
Why Would An Officer Or Director Be Sued?
There are a number of scenarios where a director or officer might be sued as it relates to their position with the San Diego company. For example, if they were to breach their fiduciary duty that results in financial loss or bankruptcy. Employees might sue a director if this were to happen, as they might have lost their job. Other scenarios could include a misrepresentation of company assets, misuse of company funds, fraud, failure to comply with workplace laws, and a lack of corporate governance. Often these result in lawsuits from a variety of sources, such as investors, vendors, and more.
Even competitors could sue directors and officers. If there was a theft of intellectual property or even poaching of a Los Angeles competitor’s customers could result in a lawsuit. As you can see, there are a variety of possible explanations for why you may need directors and officers liability insurance for your business.
What Else Should A Business Know Regarding Director And Officer Insurance
The best option for any Anaheim business is to speak with several different insurance companies in order to get a number of quotes for the cost of the insurance. You will want to review the quotes to ensure that the policy you choose covers a wide range of claims, from regulatory actions to criminal investigations and employee lawsuits. Even with all of this, there are several things you should keep in mind when discussing D&O insurance.
First, will the policy cover just directors and officers, or will it also cover the company as a whole? Next, does the policy cover innocent directors if one of the directors or officers is found guilty of wrongdoing? Will the policy cover allegations of criminal misconduct up to the point of adjudication. And what policy limits does your business need? All of these will help you in making the right decision when it comes to having a directors and officers liability insurance policy for your Riverside business.