Not everyone who works under the banner of your brand is going to be considered an employee. While you might know this when it comes to individuals like freelancers, contractors, and consultants, you also need to think about the people who sit at the top. Members of boards, such as directors and officers, are in a unique position in a company. Not only do they not count as employees, they don’t fall under the coverage offered by traditional insurance even though their actions can have an impact on your business.
Review the Details
The association that directors and officers have with a company can usually be enough to tie the entities together in a legal sense. If you’re someone who is trying to establish a certain reputation or image for your company, a director who is acting against your wishes can lead to public scrutiny or even legal troubles in certain scenarios. To avoid this and keep yourself safe from potential threats, you absolutely need to look into coverage for D&O sales scenarios. Other insurance points that can prove useful include:
- Errors and omissions liability
- Cybercrime coverage
- Workers’ comp for contractors
Take Action Now
Though it might not seem like a major problem right now, having coverage for directors and officers can have a direct impact on the long-term success of your brand. Take action and find insurance coverage that will help you stay safe in the event someone connected to your company makes a mistake.