Liability insurance that covers your staff and leadership is a little different from your general liability coverage. It needs to be specifically linked to the risks of the role. That’s why employee fidelity coverage and D&O insurance programs are kept separate, and also why many businesses need both. If your organization does not have a corporate structure with directors and officers, then there is probably another form of professional liability coverage for you. If it does make use of that structure, though, then this coverage is essential.
Leadership Decisions and Liability
The reason these programs exist is because your leaders are invested with decision-making power that affects both stakeholders and customers. As a result, the wrong call for the organization’s direction can result in not only liability because of effects on those you serve but also on those who own a piece of the business. Common areas of coverage for D&O insurance programs include:
- Employment practices liability
- Crime
- Kidnap and ransom coverage to protect your officers
- Corporate management liability
- Industry-specific professional liability
- Fiduciary liability coverage
Since the level of exposure faced by your business is highly dependent on its size and activities, estimating the price of this kind of policy is difficult to do outside of a quote specifically aimed at your organization. If you know this is coverage you need, then you should get a quote right away.
