Directors & Officers Liability Insurance for Beauty Care Businesses

Why directors & officers (D&O) liability

Are you uncertain if directors and officers liability insurance is necessary? Directors and officers (D&O) liability insurance is designed to protect individuals who are personally sued for wrongdoing while serving as directors or officers of an organization. It provides coverage for defence costs and any resulting settlements the directors, officers and the organization are required to pay.

Are you prepared to be held personally liable (that means your own personal assets are at stake) for the decisions you and your fellow board members make on behalf of the organization whether or not you were involved in the decision?

Six good reasons for directors & officers liability insurance

If you are still uncertain, here are six good reasons for board members to have directors and officers liability Insurance:

1. Acts of others: Directors can be held jointly liable for the acts committed by other directors, even if they weren’t present for the meetings.
2. Loss and waste: Directors can be held personally liable for failure to properly protect the assets of the organization resulting in a loss (such as failing to obtain proper insurance coverage!) or for incorrect decisions that result in a loss or waste.
3. Wrongful acts: Directors can be held personally liable for wrongful acts or omissions committed in the performance of their duties.
4. Discrimination: Directors can be held personally responsible for acts of discrimination against others because of their race, age or sex.
5. Wrongful dismissal: Directors can be held personally liable for the costs associated with a wrongful dismissal action.
6. Reports: Directors can be held personally liable for false or misleading reports, and for the failure to verify facts in official documents.