Finance / Banking
Healthcare
Real estate
Retail
Manufacturing
Education
D&O insurance covers claims related to wrongful acts, such as judgment errors, duty breaches, and neglectful actions. It also covers defense costs, settlements, and judgments that arise from these claims.
D&O Insurance in New York
Protect your company’s leaders with Directors and Officers insurance: a safety net you can’t afford to ignore.
Directors and officers insurance in NY
Is your business at risk for lawsuits or financial losses from management decisions?
If so, you may need to consider Directors and Officers (D&O) insurance: the protection your company can’t afford to ignore.
Consider D&O insurance an expense that preserves the reputation (and money) you’ve built.
What is D&O insurance?
D&O insurance, or Directors and Officers insurance, is a fancy way of saying lawsuit protection for your company’s bigwigs. It defends directors and officers against claims related to employment. This might include discrimination or wrongful termination.
In today’s litigious business environment, this coverage can be invaluable. It serves as a vital safety net for board members, officers, and executives who risk their necks to keep the company afloat.
Coverage for D&O can include:
- defense costs
- settlement payments
- damages awarded by the courts
Whether you are a public or private company, D&O insurance is like having a superhero squad of lawyers when things get messy. When you invest in D&O insurance, you safeguard top talent and keep profits flowing.
Typical small business risks covered by D&O insurance
D&O insurance covers a wide range of risks many small businesses may face. Here are some of the most common small business risks covered by D&O insurance in New York:
EPLI (employment practices liability insurance)
EPLI protects businesses and their directors/officers from claims like:
- discrimination
- harassment
- wrongful termination
- other employment-related issues
These claims can come from current, former, or potential employees. They often result in costly legal fees and damages. D&O insurance can help businesses mitigate these risks and protect their reputation.
Regulatory investigations
Regulatory investigations are common in certain industries and can be expensive and time-consuming. D&O insurance protects businesses and their directors/officers during a regulatory investigation or proceeding by covering the costs of legal representation, settlements, and fines from regulatory issues.
Cyber claims
With the recent advancements in cybercrime, many small businesses are turning to D&O insurance. It helps protect themselves from financial losses and reputation damage. Cyber claims can include:
- data breaches
- network failures
- cyber-attacks
…each of which can result in significant financial and legal repercussions.
Having D&O insurance in place provides peace of mind for small business owners. With it, they know they have coverage in a cyber incident or other legal issues.
Intellectual property infringement
This coverage protects against infringement claims on someone else’s intellectual property rights. It covers legal fees, settlements, and damages.
Choose HCP Insurance for your D&O coverage in New York
Don’t let lawsuits sink your business! Instead, contact HCP Insurance today to speak with our advisors and find the right insurance coverage.
Who needs D&O insurance?
Even the most well-intentioned and well-prepared leaders can find themselves facing legal trouble.
Industries that can benefit from D&O insurance include:
- Finance / Banking
- Healthcare
- Real estate
- Technology
- Retail
- Manufacturing
- Education
- Non-Profits
- Professional Services (such as law firms and accounting firms)
Examples of D&O claims scenarios
Banking
A Goldman Sachs banker faces insider trading charges. As a result, the company faces damage to its reputation. But in such cases, the D&O insurance may cover the defense costs and settlement fees. Ultimately, this helps the company avoid financial ruin and reputational damage.
Non-profits
The Former Head of L.I. Autism charity, which is a non-profit organization, is accused of embezzlement. The organization must defend itself in court.
The legal fees and damages are too costly to handle independently, but D&O insurance can provide coverage for legal expenses and settlement fees. This ensures the organization can continue without interruption.
Small business
A former employee sues a small business owner for wrongful termination. The owner must pay for the legal defense and any settlement costs, which could put the business at risk of bankruptcy.
With D&O insurance, the business is protected from the financial burden of the lawsuit, and they can continue operating without significant losses.
Frequently asked questions about D&O insurance
Here are answers to some of the other questions you might have about this useful coverage.
No — D&O insurance is useful for any company, regardless of size or industry. Even small businesses and non-profit organizations face lawsuits from their leader’s actions.
The amount of coverage needed for D&O insurance depends on:
- company size
- industry
- potential risks
Consult with an insurance professional to determine the appropriate level of coverage.
D&O insurance doesn’t specifically cover cyber incidents. Yet, some policies may cover cyber-related claims, such as data breaches or cyber-attacks. Our experienced insurance advisors can guide you through this complex topic.
The cost of D&O insurance varies depending on the company’s size, the industry, and the level of coverage needed. Remember to get quotes from several insurance providers to find the most cost-effective policy for your company.
New York D&O insurance
Protect your directors and officers from the Big Apple’s legal bite! Get in touch with HCP Insurance today to learn more about D&O insurance for your company.
