Executive Liability Insurance
Much of a company's legal budget will go into rebutting misconduct claims.

If the top brass at your business ever find themselves in a position where they need to defend themselves against misconduct allegations, directors' and officers' insurance may help cover the expenses. Errors and omissions insurance, general liability insurance, is now often thought of in tandem with directors' and officers' liability insurance. Semel risk consultants and Associates are aware of the challenges of becoming an entrepreneur. That's why our agency provides a suite of insurance policies to safeguard your most prized possessions. Read our in-depth overview of directors' and officers' insurance to learn how protecting your company's top brass may help your business succeed.

In what ways is D&O insurance useful?

Much of a company's legal budget will go into rebutting misconduct claims. Customer allegations of deception, conflicts of interest, and ethical lapses are only a few examples. The company will pay legal fees incurred when directors or officers must defend their own acts. This is where directors' and officers' liability insurance comes in handy. But, if a firm goes bankrupt, the bylaws that normally protect the company's senior executives will no longer apply. D&O insurance is the greatest way to safeguard directors and officers financially if they face legal action or are sued. Any of the following may be covered by your director's and officers' insurance policy:

  • Lawyer representation fees

  • Damage awards and settlements

  • Personal property owned by the spouse or domestic partner of a director or official

D&O insurance: how does it function?

If you need assistance understanding your commercial insurance before filing a claim, semel risk consultants are here to help. Policies may vary in what they cover, but errors and omissions insurance often function similarly regardless of the situation. Consider a corporation that is still in debt at the time it enters liquidation. The company's director might then be sued by creditors seeking to recoup debts. Creditors often allege wrongdoing by their debtors, such as carelessness or malicious intent. Creditors in this position will typically investigate the company's directors and executives to see whether or not any of them may be held personally liable for the company's financial woes. Claims under D&O insurance may be brought after an allegation has been made and judicial processes have begun. The coverage will pay for any necessary legal fees and settlements if the director is held guilty. Remember that D&O insurance only covers the specific obligations specified in the policy.