Legal costs as well as awards and settlements, which come from wrongful act allegations and lawsuits and can be levied against an organization as well as their Board of Directors and/or Officers, can be offset by obtaining Directors and Officers (D&O) liability coverage.
Directors and Officers can be held personally liable for these types of claims which are becoming more and more common. In order to attract and retain qualified Directors and Officers, it’s vitally important to have D&O liability insurance.
Having D&O liability insurance helps protect the personal assets of not only your Directors and Officers themselves, but also their spouses should they be brought into litigation by employees, vendors, competitors, investors, or customers. Most Directors and Officers will look to a company to provide both indemnification as well as D&O insurance.
It’s a commonly held misconception that D&O claims will mostly only affect a public company. Public, private and non-profit companies all face this very real risk. TPG team members can help you to understand what type of D&O coverage is needed.