In today’s increasingly complex economy, it is important for businesses and companies of all sizes and fields to be protected against potentially damaging situations. It is not uncommon for one to turn on the evening news and hear a story about a large, publicly traded company being the target of numerous lawsuits. Though these companies often suffer the most financially and publicly from lawsuits and other legal claims, smaller businesses are also at risk. There are many lawsuits filed each and every year against mid sized corporations and small businesses. Sometimes, stakeholders who are unsatisfied with the returns on their corporate investments will lay the blame on a company’s executives, claiming cases of financial mismanagement, misappropriation of funds, corporate negligence, and other disputes. It is in such situations that litigation takes place on the part of stakeholders against their company. In these and other situations, it is important that a company is protected by d&o insurance.
D&O Insurance for Small Businesses
Though publicly traded corporations are usually the ones who are heard about in cases of lawsuit over financial incompetence, small businesses too are at risk. It is estimated that over 300 claims are made against businesses each and every year. Often times, investors, family members, or other associates will file claims against an individual’s small business in order to harm the owner, their directors, and their officers. D&o insurance helps these businesses to survive and thrive despite losses that may be accumulated due to lawsuits.