When starting out your business, you need the most basic business insurance to protect your company from lawsuits. You purchase worker’s compensation, general liability and BOP insurance. Yet one type of insurance not on a lot of people’s radars is D&O insurance.

Directors and Officers (D&O) insurance is designed to protect business owners, directors and officers of a company from lawsuits in connection to the management of business operations. If a company, vendor or individual believes you are negligent in your duties for operating your business, you can be personally sued. Types of reasons you may be sued include

• Breach of contract
• Breach of fiduciary duties
• Disclosing misleading or false information
• Mismanagement of funds
• Inaccurate financial account statements
• Wrongful employee dismissal
• Unauthorized investments or loans

Without D&O insurance, the results can be devastating. You can be involved in a costly lawsuit that can span a long length of time, resulting in immense legal expenses you may not be able to pay. You may be forced to pay huge settlements to where you can no longer operate your business. You may even have to close your business.

In addition, your personal assets such as your home and items of value could also be taken. D&O insurance gives you the protection you need for such lawsuits as it will pay for any losses you are held liable for in regards to the operation of your business.

For more information about business insurance in the Hemet, California area, please contact Agape Brokers Insurance Agency at 951-927-4695.

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