Directors and Officers Liability Insurance
A Business Insurance Update From Heaton Bennett Insurance
Did you know that a privately held business has just as great a chance of having a directors and officers’ liability claim as a large publicly held firm? Having the correct insurance is important, and your basic business insurance policy may not cover your directors and officer’s liability exposure.
Directors and Officers Liability Insurance (D & O)
D & O insurance is designed to cover the directors, officers, managers, and others in the event of a claim being made by a third party against the firm and those listed above. D&O insurance also protects the personal assets of corporate directors and officers, and their spouses.
Claims can come from clients, vendors, or competitors for actual or alleged wrongful acts in managing the business. Companies are sued for many reasons including fraud, misuse of funds, breach of fiduciary duty, intellectual property and many more.
A small business hired a top salesperson away from their competitor. The salesperson started to call on all his old clients trying to bring them to the new firm. The old firm sued the salesperson and his new employer for breach of non-compete. The old firm was awarded $500,000 in damages.
We are prepared to help you manage all your business risks. At Heaton Bennett Insurance, we pride ourselves in effectively and efficiently evaluating your business insurance needs in Austin, Texas. Nobody knows your business better than you, and nobody knows business insurance better than Heaton Bennett.