While directors and officers are responsible for making important decisions regarding the company they preside over, they are also responsible for litigations brought against the company. Directors and officers insurance is essential in providing quality defense coverage in these situations. When choosing a directors and officers insurancepolicy, you may want to consider some of the following details:
Claims-made coverage: This type of policy will pay for claims that are made during the coverage period, regardless of the date on which the act occurred. With claims-made coverage, you must be enrolled in the policy on the day the lawsuit is filed.
Defense within limit: When customizing an insurance plan, you’ll want to consider the potential costs of future defense claims. Purchasing enough protection to cover the attorney’s fees, and other legal costs within the liability limit of your plan is important.
Policy Limit: When choosing a plan, you want to determine the amount of coverage needed on your policy. Make sure that you factor in the costs of multiple claims, so that you have plenty of coverage available.
Retroactive Date: In a claims-made policy, a lawsuit must be filed after a certain date, known as the retroactive date. Claims filed before the retroactive date may not be covered under your plan.
By researching the available directors and officers insurance plans available, you can select the plan that will provide the maximum amount of coverage you need.