Learn more about D&O liability insurance Houston, TX when you speak with the experts from Texas Insurance Agency. Not every business needs this type of insurance, but it will come in handy if you have high-ranking managing staff that could be sued for their business actions. We can discuss the details and assess whether your business will need this coverage plan. Call our office today to schedule a meeting or get started with a free quote.
What is D&O liability insurance?
D&O liability insurance protects the people who work for and are responsible for a business. This kind of insurance is also called “D&O insurance” or “Management Liability Insurance.”
This is a type of liability insurance that protects people with high-ranking management roles in a business or other group from losing personal money if they are sued for wrongdoings they are said to have done in their role as directors and officers. It can also pay for settlements, attorney fees, and other costs related to the court case. If you’re worried about legal problems with your management, having this insurance coverage will protect them.
Is D&O liability insurance required by the law?
It depends on the specifics of a company whether D&O liability insurance is needed or not. Even though it’s not required by law, many businesses, especially for-profits, educational institutions, and those that are publicly traded see it as important. Investors, board members, or other important people may also need it to lower the risk of expensive lawsuits.
Get in touch with Texas Insurance Agency today to learn more about this coverage’s benefits. Our team can help assess the right coverage amount and options to ensure your business gets all the protection it needs. We can tell you about the pros and cons of D&O insurance, so contact us today to hear how it might be the right plan for you.
The Details Behind D&O Liability Insurance Houston, TX
Anything could happen while you’re running your business. Even a seemingly simple mistake can cause massive problems if the pileup. Companies that have directors and officers can protect their personal assets with D&O liability insurance. This is in case they are sued by employees, vendors, competitors, investors, customers, regulators, or other parties for actual or alleged wrongdoings while running the business.
If a director or officer gets sued, this kind of insurance can pay for their case in court and any damages or losses they have to pay the other party. This is especially true for educational institutions, non-profits, and publicly traded companies, where directors and officers have a big duty and responsibility to the organization. You can give your directors and officers more peace of mind with the right coverage so they can continue with their duties.
Often, the type of business, the area they work in, and the company’s rules or charter will determine if they need this kind of insurance. When it comes to big businesses or groups where financial danger and legal liability are higher, it’s usually important. Not only big businesses but also small and medium-sized ones, especially those in dangerous fields. Texas Insurance Agency can help you determine if this type of coverage is the right one for your business.
The Difference Between D&O & General Liability
D&O insurance is only one type of liability insurance available for your business. Another common one is general liability. While general liability and D&O insurance both protect you against certain risks, a major difference is the type of coverage they offer.
When a business has general liability, its assets are protected in case the business hurts someone or damages their property. Most of the time, it pays for legal fees and losses if the business is found to be legally responsible. It can protect you from things like injuries to people or damage to their property or ads.
D&O liability insurance, on the other hand, protects the personal assets of the company’s directors and officers in case they are sued personally by employees, rivals, regulators, customers, or other parties for allegedly doing wrong things while running the business. It normally pays for lawyers’ fees, settlements, and other costs that come up when directors and officers are sued, even if the claims aren’t true.
Both types of insurance are important for lowering risk, but they cover different aspects of liability and are meant to work together as part of a business’s total risk management plan. Depending on your business needs, you could even have both types of coverage in your overall insurance plan to ensure all of your bases are covered and protected.
Other Types of Business Insurance You May Need
There are several business insurance options that can supplement your D&O liability insurance plan. Together, they provide all-rounder coverage and further reduce the potential risks your business or group may face. Texas Insurance Agency can discuss which plans are best suited for your business. So, you should consider the following options:
- Professional Liability
- Business Property
- Cyber Liability
- Business Interruption or Income Loss
- Business Auto
- Worker’s Comp
- Product Liability
- Fidelity & Crime
- Employment Practices Liability
Our team of experts can walk you through each option to assess whether it’s the right choice for you. Your insurance package should be built for you, so no coverage plan is the same.
Building Your Insurance Package For You With You
Texas Insurance Agency works with local insurance companies to provide clients with as many options as possible. When you contact our office, we’ll show you options that not only protect everything you want to protect, but they’ll also fall within your budget. We have several locations throughout the city, so you can choose whichever’s closest, other than our Houston office. Any of our experts can discuss the details of D&O liability insurance.
Houston, Texas Fun Facts:
- Houston is also known as Space City.
- It’s home to NASA Mission Control.
- The first word spoken on the Moon was “Houston.”