Most commonly, directors and officers insurance, or D & O insurance, is purchased by companies looking to protect the members of their Board of Directors or other high-level positions from claims made against the company. However, businesses of all types can benefit from this type of coverage as well as other organizations such as non-profit organizations and educational providers. No matter what type or size your educational facility is, having proper business insurance in place minimizes risks of claims against it. This can help to cover significant financial costs related to settlements and, therefore, keep your organization operational when someone makes a claim against it.
Why Do You Need This Type of Professional Liability Insurance?
Most educational facilities know the risks associated with insuring against property loss, keeping employees protected and safeguarding equipment. However, D & O insurance is often forgotten, and that can be a costly mistake. This type of coverage aids in reducing risks associated with your directors and officers. Leaders of the organization may be held responsible for the organization’s failures, for example, to comply with regulations or to provide a safe place to work or learn. This can become a sizable claim. Professional liability insurance like this can help cover these losses.
What type of claims can people make against your organization? As an educational institution, the risks are just as many as that of any business. This may include:
- Misrepresentation of your curriculum or services.
- Failure to comply with regulations or laws governing your educational facility.
- Cyber liability related to payments.
- Mismanagement of funds for the organization.
- Employment practices and human resource concerns.
- Improper decisions made by leaders of the organization.
In short, failures or mismanagement may cause the directors or officers of your organization to be put at risk. To avoid this, protect them with the right level of business insurance.
D & O insurance is a must for all educational organizations—even smaller ones. Because it can help to protect your company, this business insurance may minimize the risk that a single claim made against you company could cause, such as the potential closure of your location. Work with your professional liability insurance agent to be sure your organization has extensive protection from these and other risks.
We’ve got you covered. Call Avanti Associates at (914) 273-8511 for more information on Armonk D & O insurance.