Risk ManagementA Business Insurance Update Local businesses need many different kinds of commercial insurance. Most businesses purchase commercial insurance to cover their business property and operations. Others go beyond that and purchase employment practices liability and cyber liability to help manage their risks.  However, many businesses do not consider directors and officers (D&O) liability insurance.  Please continue reading as your risks are very real. Understanding D & O Insurance
  • Most commercial insurance policies exclude (management liability type) claims made against the company’s officers.
  • Even privately held businesses have an exposure to the risks covered under a D & O policy.
  • People sue directors and officers for a wide range of issues including failure to achieve follow government statutes, poor financial performance, fraud, failure to comply with workplace laws, lack of corporate governance, breach of fiduciary duty, improper marketing, failure to disclose information, misuse of funds, and improper conduct of employees.
  • The average D & O lawsuit cost over $600,000 in 2015.
  • Without D & O insurance, defending a lawsuit could be financially devastating to most businesses.
  • Directors and officers can be held personally liable for claims.
  • D&O claims are increasingly common for private and small companies and nonprofits; 36 percent of all organizations reported claims in the last ten years. Source: The Travelers Indemnity Company
  • The D & O policy is intended to protect directors and officers against the consequences of actual or alleged wrongful conduct when they are acting as company executives in the scope of their specific duties.
J.S. Edwards & Sherlock Insurance Agency enjoys a rich heritage dating back over 100 years proudly servicing all of Southeast Texas. A combination of two family-owned agencies built on the values of their founders, the firm is now one of Texas’ leading Independent Insurance Agencies