Los Angeles, CA, November 15, 2018 --(PR.com
)-- MFE Insurance, a California entertainment insurance firm, recently released a blog educating readers on the importance of directors & officers insurance. Carrying this type of insurance can help protect your finances in the event of a related lawsuit, preventing officers from using personal funds to support their legal cases and ensuring that your company retains the money it needs to continue operating effectively.
Directors & officers insurance, or D&O insurance, is a form of liability insurance. It covers the company's executives and any disputes raised by employees, investors, vendors, competitors and customers that may result from the decisions they make about the company. Claims this type of insurance covers include breach of fiduciary duty, failure to comply with workplace laws, theft of intellectual property, and misrepresentation. The policy covers both the individual involved in the dispute and the company as a whole and provides funds for legal fees, settlements, and other costs. General liability insurance and umbrella policies typically do not cover this type of dispute, and it is therefore important to have the proper coverage.
D&O insurance covers a range of potential problems and the executives responsible for making the decisions that could relate to those issues. By reducing the exposure to risk within the industry, your company will be able to attract and retain top talent. However, not every business necessarily needs this policy. Companies should carry this type of insurance if they have a board of directors or other officers and plan to receive venture capital funding or other investors and have valuable relationships with vendors or customers. It is suitable for a variety of businesses, including small companies that are not publicly traded.
Speak to an entertainment insurance broker to get more information about purchasing a D&O insurance policy for your business. MFE Insurance has years of experience in helping a wide range of companies in the entertainment industry, including productions, nightclubs, cannabis companies, and more, obtain the right coverage. Its skilled brokers discuss each client's needs and goals, then create a customized insurance package to meet them. MFE Insurance can be contacted online at https://www.mfeinsurance.com/ or by phone at 213-266-7990.