As the saying goes, “It takes a village to raise a child.”

In business, we could say, “It takes a team to build an organization.”

For-profit companies may have a board of directors. Nonprofit organizations may have a board and a team of volunteers, too. Some directors are compensated for their work with the organization, while others are themselves volunteers.

Whatever the specifics of the situation, the bulk of these individuals come to their board positions with a desire to help the organization thrive.

Still, mistakes happen. And even if the board of directors does all the right things, it’s a fact that not everyone will be happy about the decisions they make. The result? Lawsuits alleging wrongful actions that can range from financial mismanagement to wrongful termination or discrimination to sexual harassment.

No organization wants to be faced with a lawsuit; and no one devoting time and energy to a board position wants to be hit with a lawsuit, either. But a suit brought by—for instance—a disgruntled former employee may name the organization itself and individual board members.

How can you help protect your directors?

In addition to ensuring that they understand their responsibilities—and adhere to them faithfully—a Directors and Officers Liability policy could be a big help, and offer peace of mind to your board and your company as a whole.

D&O insurance is different from general liability insurance, offering protections that your organization's liability coverage does not. D&O policy specifics may differ, but can include

• coverage of defense costs, settlements, and judgments associated with claims
• protection for the personal assets of directors and officers
• protection for the assets of a director’s or officer’s spouse, domestic partner, or estate
• protection for the organization’s assets

It can even provide added protection if the organization experiences bankruptcy or insolvency.

Liability exposures can be devastating without the proper coverage—and a good Directors and Officers liability insurance policy can provide peace of mind not only for an organization’s leadership, but for the future of the business itself.

Beall Financial and Insurance Services has been working with business-owners for more than 25 years to help them protect their most important assets, and their companies’ future. If you have questions about insurance coverage for your business, contact us.