Do you want to know about Katy TX D&O insurance? Out of all the insurance firms in Texas, our company will help you the best. At Texas Insurance Agency, we offer the best prices and rates for our clients. We manage to handle a lot of different needs in insurance. Our advice covers many other areas. These areas include your insurance, business insurance, and your home and auto. For any inquiries on insurance, be sure to get a free quote on our website.
Katy TX D&O insurance
At our offices in Katy and Pearland, we work around the clock to help you: the client. Through our partnerships with local insurance firms, we act as a broker to help out. Over the years, we’ve kept our relationships with our partners and clients intact. That way, you can be sure you’ll get the first-rate help you need. From working with auto providers to firms like The Hartford, you won’t regret working with us.
What is D&O Insurance?
For your Katy TX D&O insurance, you might have questions. First of all, you may wonder what D&O Insurance is? Well, D&O Insurance is a type of liability insurance for the head honchos of your business or any company. The D&O, in the terms, stands for directors and officers. These are the people that run the company, so to speak. Also, these are your associates that stand on the board of directors. In addition, the officers can also be your upper and mid-level management people inside the company as well.
Furthermore, this type of insurance covers any type of defense costs that come up from legal issues. The coverage can help with any type of wrongful or criminal action in their capacity as directors and officers. In the end, this type of coverage protects the directors and officers from any type of lawsuit. In broader terms, D&O insurance can be seen as a type of management liability insurance.
What It Covers
There are three types of coverage for your Katy TX D&O insurance. They are known as Side A, Side B, and Side C. Side A is what covers the directors and officers in the lawsuit. Henceforth, this is when the companies can’t indemnify them according to corporate bylaws or rules. Also, indemnification is where there is a contract between two parties where one offers to pay for any loss due to their actions.
Aside from that, Side B is where there is a reimbursement for any payment to indemnify members of the company. This would be for any settlements, judgments, or defense costs. Furthermore, Side C is where there’s coverage when a board member is a co-defendant during litigation or regulatory action.
It’s worthy of mentioning that the rules for public companies are different from private companies. Additionally, public traded companies require a lot of underwriting. This is due to heavy reporting and compliance problems with the SEC. In addition, public companies have more exposure than private companies. As a result, Side C provides protection for public companies with securities claims. This does not cover for times when there’s a duty to protect leadership.
Requirements and Benefits
For D&O insurance, there are a few underwriting requirements. First and foremost, the underwriters are the financial institutions that take on the liability. They offer to pay damages on behalf of another.
First off, the company has to provide a complete breakdown of ownership. This just means you show a record of who has representation in the company. This will be in terms of ownership.
Furthermore, the second requirement is to provide financial statements from the past. That could be from a year to when the company began. And finally, the underwriters will need to know the identity of investors. They will run background checks for lawsuit history for any investor or board member.
Additionally, the retention in a D&O policy is like a deductible. This is what the company pays before there’s a coverage claim. It’s also vital to know that D&O is always written as Claims Made. This is where the policy must be in place when the claim happens.
On the whole, D&O insurance covers a lot. It protects against lawsuits from many areas. Henceforth, the protection goes over a breach of fiduciary duty that results in bankruptcy. It also protects against misrepresentation of assets. And not to mention the misuse of funds or business assets and suspected fraud. In addition, the coverage extends to accusations of violations of non-competes. Along with the NDAs of former employees. And also protection for any theft of intellectual property or lack of corporate governance.
What It Does Not Cover
Like with any insurance, there are exceptions to the rules. Actual fraud is one of those exceptions. And also, personal profits or accounting of profits. That could be in line with illegal compensation. The coverage also does not help with any present or prior litigation. You can also not expect coverage for late or past claim notices. And bodily injury or property damage. It also doesn’t protect the insured against insured claims or ERISA.
Management Liability Insurance
Your Katy TX D&O insurance is a part of management liability insurance. Again, liability insurance is what covers any legal problem. So, in this case, this would be for the upper-level people of the company. Management liability insurance covers the legal costs and any business loss on the part of the managers. Management liability insurance can help with extortion or kidnappings as well.
Sometimes, upper-level people can be the targets of criminal activity. Management liability insurance also covers employment practices insurance. This is for sexual harassment and discrimination protections. Management liability insurance also covers fiduciary liability to protect employee benefits. In the end, D&O insurance falls under the umbrella of management liability insurance.
Learn more with us!
With Texas Insurance Agency, you can get the best advice on the D&O insurance you need for your company. Visit our locations or give us an email to learn more about your options. Our expert team is here to help you with your Katy TX D&O insurance.
Fun Facts about Katy, TX
- Katy has a population of almost 20,000 people.
- The city gets its name from the K-T Railroad.
- The city is home to sugar cane plants.
- The primary industry in the early years was rich farming.
- To learn more about Katy, visit the city’s website.