Directors & Officers

The Importance Of Florida Directors & Officers Insurance

Directors and officers insurance (D&O) is coverage for professional directors and officers. The plan protects these professionals if they are confronted with lawsuits and civil or criminal charges. They receive coverage for trials and investigations, but do not receive coverage if they are found guilty. It is essential that you learn the basic details about Florida directors & officers insurance.

General Information     

There are different types of D&O coverage options. There are four main insuring clauses:

•             Side-A for non-indemnified individuals

•             Side-B for indemnified individuals

•             Side-C for securities claims

•             Side-D for investigation costs

The Side-A clause covers the individuals not covered by the corporation. The corporation is not able to pay for the legal needs of directors and officers.

The Side-B clause is designed for the corporation after it insures its directors and officers. The Side-C clause covers the corporation in case of securities claims. It may be necessary to obtain additional coverage by taking out a Side-A Difference in Conditions (DIC) policy.

D&O Coverage in Florida

Directors and officers who work in Florida are eligible to receive special coverage. The types of groups covered are companies, nonprofit organizations and community organizations. Nonprofit D&O coverage is available to anyone who manages a nonprofit group. The director could be held responsible for errors and misjudgments that affect the functions of the organization. Nonprofit directors need this coverage because they are more likely to receive lawsuits.

Directors of community associates are liable for any major problems that occur. Community members are able to file claims if the association has fallen short of expectations. The directors do not receive full coverage under a general liability policy, so they need additional D&O coverage.

It is important to look through each insurance plan carefully. You may not be able to receive full protections, which include legal defense fees or costs related to negligence. Read over all of the issues that are covered along with the maximum limits.

Find the Right Plan for an Individual or Company

Increase your chances of securing the best policy by working with an insurance specialist. There are professional agents and brokers who have extensive knowledge in the field. They tell you everything you need to know about D&O insurance in general along with the different variations. Learning about the different clauses and plans is essential for anyone in need of maximum protection.

Everyone who works in business has to consider getting insurance. Your main goal is to know which type of coverage to choose and the amount you need. Directors and officers insurance (D&O) is an option that few people have heard of before. Individual directors and officers need to be covered for legal fees if they ever go to court. Learn more about Florida directors & officers insurance if you need to protect your personal and professional interests.