Business Protections With a Directors and Officers Policy
For many organizations and businesses, major decisions are put in the hands of those at the top of the hierarchy. This category includes executives, directors, management and others in charge of making choices that affect policies and procedures. However, because of human error or questionable values, the best decisions may not always be made and can impact the organization and its patrons. Luckily with insurance, safeguards can be put in place to minimize the negative results of poor decision-making by these individuals. Upon learning about what insurance plans for directors and officers cover, it can be easier to feel confident knowing the best team members are in place to keep the businesses running smoothly.
When officials are hired and assume a position with great responsibility, it can be expected that they will use their talents, experience and creativity to steer the employees and patrons in the right direction. Unfortunately, this isn’t always the case and can result in damage or loss to the organization or its clients. Some examples of this include the following:
Poor investment decisions
Releasing confidential information
Conflicts of interest
It’s reasonable to believe that after heavy vetting that the right individuals will lead with an organization’s best interests in mind. However, in the event that those in charge don’t do their jobs correctly or responsibly it can be reassuring to know that insurance plans for directors and officers cover the most typical exposures.