Directors and Officers Insurance
Directors and officers insurance protects your financial services business from claims that company officials made management errors. This protects the directors and officers of your company from suffering financially in the event of a lawsuit and is an important inducement for talented people to agree to serve as directors or officers of your company.
In the event of a claim, the director or officer will receive reimbursement for any damages or losses. If a lawsuit is filed, legal fees will also be covered.
For example, a client may file a lawsuit claiming that they suffered financially because their tax return was not submitted in time and that your company’s officers were negligent in performing their duties. D&O insurance would cover the subsequent lawsuit.