Many companies these days are realizing how imperative it is to have additional business coverage for mistakes made by their staff. Everyone has heard of Directors & Officers insurance and Errors & Omissions insurance. But what exactly is the difference between the two types of insurance?
• Directors & Officers. This type of insurance covers negligent acts, omissions, or untrue statements committed by directors and officers which result in lawsuits. It reimburses the company when it indemnifies its directors and officers.
• Errors & Omissions. E&O protects people who give advice, make educated recommendations, design solutions, or represent the needs of others for a profit. It protects these people when they make a mistake or neglect to do something they should have done.
Insurance carriers often offer to include both of these in a BOP (business owners policy). It’s very important to your company to decide if you need protection against human error – which will happen eventually. Everyone makes mistakes; only some are much more serious than others.
With Directors & Officers Insurance, you’re protecting a huge chunk of your company. To find out more about Directors and Officers insurance, contact us today. We’re Elliott Insurance, an independent agency based in Plantsville, Connecticut.
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