We\u2019ve all heard bizarre lawsuit stories, including the accounts of a woman who sued McDonald’s for serving her hot coffee (which subsequently burned her), the man who sued himself for acting against his own religious beliefs, or the customer who took an energy drink brand to court over his persistent tiredness.<\/p>\n\n\n\n
In a time when it\u2019s possible for just about anyone to sue anyone, and for just about anything, organisations are urged to arm themselves with insurance policies that protect against legal claims made against their business, their employees, and their directors \u2013 whether legitimate or not. One such policy is the directors and officers (D&O) liability insurance.<\/p>\n\n\n\n
What is D&O liability insurance? <\/strong><\/strong><\/p>\n\n\n\n D&O liability insurance is designed to protect individuals from personal losses if they are sued because of serving as directors or officers of a business or another type of organisation.<\/p>\n\n\n\n People might sue the management of an organisation in their personal capacity when the involved directors or senior officers are accused of mismanagement or for placing their personal interests ahead of that of the company, the customer or the general public. If these actions result in damages or losses, there may be grounds for a liability case against the directors or officers in a personal capacity.<\/p>\n\n\n\n The opportunity to sue is open to just about anyone: employees, customers, shareholder, vendors and even the organisation\u2019s competitors. The legal suits that could arise against directors and officers may include:<\/p>\n\n\n\n Illegal acts or illegal profits are generally not covered under D&O insurance.<\/p>\n\n\n\n The Benefits \u2013 how D&O liability protects and empowers your company<\/strong><\/strong><\/p>\n\n\n\n D&O liability insurance protects personal assets belonging to corporate directors and officers, as well as their spouses. A D&O liability policy usually covers legal fees, final settlements and other costs that may arise as a result of and during the lawsuit.<\/p>\n\n\n\n It is often mistakenly assumed that D&O claims occur in public companies and that only shareholders launch such lawsuits. The fact is that public, private and non-profit companies face equal risks when it comes to D&O litigation. Any company that has a board of directors or advisory committees should consider D&O insurance, including non-profit organisations.<\/p>\n\n\n\n An organisation doesn\u2019t have to generate massive revenue for its directors and officers to end up being personally sued because of their role within the company \u2013 whether the alleged mismanagement was intentional or an honest oversight. Even smaller companies with fewer assets and shallower pockets need the protection of a D&O liability policy.<\/p>\n\n\n\n The benefits of a D&O liability insurance policy include:<\/p>\n\n\n\n For further information about D&O insurance or for a quotation, reach out to a qualified Indwe Risk Services advisor at (011) 912 7300 or indwe@indwe.co.za.<\/p>\n","protected":false},"excerpt":{"rendered":" We\u2019ve all heard bizarre lawsuit stories, including the accounts of a woman who sued McDonald’s for serving her hot coffee (which subsequently burned her), the man who sued himself for acting against his own religious beliefs, or the customer who took an energy drink brand to court over his persistent tiredness. In a time when […]<\/p>\n","protected":false},"author":1,"featured_media":1307,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"yoast_head":"\n