Directors and officers insurance in Florida is a form a liability insurance that is designed to protect those who are looking to safeguard personal assets. It is one of the many aspects of community association insurance that must be addressed. When corporate directors and officers are facing litigation from employees or vendors, directors and officers insurance insulates them against any and all wrongful acts that have taken place.
These insurance policies provide valuable coverage when it comes to legal fees and the costs that are associated with potential settlement. Directors and officers of a company who do not wish to be left holding the bag will want to make sure that they are doing everything in their power to avoid such issues.
In addition to customers and vendors, directors and officers must be wary when it comes to potential litigation from investors or competitors. This insurance is not only designed to protect officers and directors, though. The protection is extended to the rest of the company. It functions as the financial backing for any standard indemnification provision.
Thanks to these provisions, officers and directors are not held liable for any losses that take place under their stewardship. If a director or officer is going to work with a company, they will want to make sure that this insurance is being provided before they sign on the dotted line.
All companies must take the time to assess their risk factors and receive quotes. One of the most common misconceptions about directors and officers claims is that they are the exclusive domain of companies that have already gone public. In reality, non profit companies and private companies are also at risk of litigation and should be receiving quotes whenever possible.
If the business possesses an advisory committee or a corporate board, they will need to make sure that they are remaining protected over the long haul. Those who do not take the time to receive quotes are placing themselves in an incredibly challenging position going forward. A company does not need to rake in millions of dollars to require such protection.
In fact, smaller businesses should be especially cognizant of the risks that are occurring. All it take is one lawsuit to completely decimate the budget of a smaller company or a non profit. Directors and officers often face lawsuits over company affairs, regardless of the company's size or status. Be sure to schedule a consultation with an experienced directors and officers insurance provider.
A smaller company that does not have the assets on hand to weather a storm of this nature will need to make sure that they are providing themselves with the proper umbrella. Whether the company has deep pockets or they are just getting started out, receiving quotes is equally important for both parties.