Owners of private companies without shareholders often believe they do not need directors and officers liability coverage. The misconception takes hold because small, privately held companies often have no formal board of directors or shareholders – which seemingly limits exposure to lawsuits and dismisses the need for D&O liability coverage. While logical, this could not be further from the truth.
Directors & Officers coverage protects both health care professionals and the organizations they serve.
Every corporation relies on the guidance of its board of directors for success. Although lawsuits against larger, publicly traded companies receive the lion’s share of media attention, privately held corporations are also vulnerable to lawsuits by competitors, government agencies, creditors and employees. You can protect your hard-earned success by purchasing directors and officers (D&O) coverage for your company.
