Individuals who manage and operate businesses at the highest level are sometimes held accountable for mistakes made at all levels. Fraud claims against companies are growing in occurrence as are they growing in the level of risk they present. Many directors and business owners, operators and founders face fraud claims through costly lawsuits. Even in situations where the fraud is not true and you plan to prove it in a court of law, without financial protection, such events can lead to costly court costs and attorney fees. D&O insurance can help with this type of financial risk.
How Can D & O Insurance Help You?
Your business is facing a claim of fraud and your directors or operators are facing claims on their own actions and management styles. As a result, your business is headed to court to fight off such claims. The problem is, claims like this, even when they are not accurate, are costly. With directors & operators insurance, you may gain the financial support necessary to pay for legal counsel throughout such events.
Many times, companies of all sizes face such lawsuits simply because of the litigious society we live in. Even if you are sure your business is not at fault, you still need to pay for your legal defense and that can get costly. If you have a D&O insurance policy in place, perhaps as a part of your business insurance, you can gain the financial support you need to pay for that legal defense and to get through this situation. Of course, in many cases, if you are found to be responsible, this type of business insurance also steps in to potentially help you with any settlement paid out up to the limit of the policy.
As a business owner, director or operator, it is essential to take steps to protect your own vested interest in the business through a D&O insurance plan. These are not necessarily expensive plans, but they are a form of business liability insurance you cannot ignore even when you believe you are doing everything by the book. A single, costly lawsuit could otherwise bankrupt the company. This business insurance helps to minimize that risk.
Get the protection you need. Call Avanti Associates at (914) 273-8511 for more information on Armonk D&O insurance.