It is liability insurance to cover damages or defend costs, in the event a Director or an Officer suffer losses as a result of a lawsuit for alleged wrongful acts while acting in their capacity as a Director and an Officer for an organization. To explain in more laymen terms, it insures “Behavior” in that the decisions of directors and officers are the matters of which often lead to covered claims.
That is, an incorrect decision other lead to shareholder or employee discontent and, thus, a lawsuit against those directors and officer who make the decision.
State law typically protects the directors and officers from Liability, but this does not mean that actions are not brought by private plaintiffs.
Who is at risk?
You do not have to be on the board of a fortune 500 company to be at risk. No!!
What is shocking is that claims can occur to those that serve on local boards, most typically; Village Boards, Town Boards, School Boards, Homeowner’s Associations or even serving on small Art Council.
A claim can occur by a board member just for making a stupid comment about another person’s character.
If you serve on any board in any capacity it is your obligation to ask the organization in which you serve if you are covered for Directors and Officers Liability.
——————————-
If you want more information on this subject you may call or contact the MVR Insurance Agency at www.mvragency.com
———————————-
Visit our site at www.mvragency.com we would be happy to help you with your Directors and Officers liability needs.
———————————–
Call Scot McCartney or John Verrino here at The MVR Insurance Agency (914) 693-3500 because “We Are Here Before You Need Us”
———————————–
Follow us on Twitter @mvragency or subscribe to our YouTube Channel “MVRAgency”