Directors and Officers Insurance- A Brief Introduction
Directors and Officers Insurance, also known as D&O insurance, was created to safeguard company managers. Organizational duties require managerial decisions. That sometimes serves as a double-edged sword, and adversely affects the company. These kinds of D&O risks are common in the real world due to unpredictability.
Thus, the D&O Insurance Policy exists to finance the personal liabilities of the decision-makers in such cases. Moreover, if the organization has paid for such losses, the D&O insurance policy will also reimburse them. Interestingly, the coverage envelops past, present, and future directors and officers of the entire organization. The D&O claims are valid as long in two cases:
- Claims made when the D&O policy is active.
- Claims made fall within the extended period of the D&O contract.
The maximum length of the contract extension is 72 weeks. Agents should keep this in mind when selling D&O policies.
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