Directors Liability Insurance is crucial to protect yourself, as a company director, from the risk of personal loss resulting from legal claims made against you while you perform duties on behalf of the company. At Jasmur Insurance Agency, we understand that despite your good intentions, mistakes can happen and you could be held personally liable for allegations of a breach of duty or wrongful acts.

Here’s what you need to know about Directors’ Liability Insurance:

1. The policy provides indemnity against amounts that the insured may become legally liable to pay as compensation including agreed defence costs and expenses resulting from any wrongful act by the insured in their capacities as directors or officers of the Insured Company. This means that the policy covers claims resulting from managerial decisions that have adverse financial consequences.
2. Shareholders, employees, statutory bodies, creditors, competitors, and even the corporation itself can bring a claim against you, so it’s essential to have protection in place.
3. The investigation costs and reputational damage from lengthy legal proceedings can be significant, whether or not you are found liable for any claims brought against you or the business. Therefore, it is recommended that all Directors and Officers of corporations or businesses take out Directors’ Liability Insurance.
4. The policy can cover the directors and officers of for-profit businesses, privately held firms, not-for-profit organizations, and educational institutions.
5. Directors’ Liability Insurance can also help you attract talented individuals to your organization, as it assures them that their assets are protected if they face a legal claim over the decisions they make.
6. Don’t put your assets at risk. Contact us at Jasmur Insurance Agency to discuss your Directors Liability Insurance options today.