First, you need Directors & Officers Insurance
because claims from stockholders, employees, and
clients will be made against the company, AND
against the directors of the company. Since a
director can be held personally responsible for
acts of the company, most directors and officers
will demand to be protected rather than put their
personal assets at stake.
Secondly, you need Directors and Officers Insurance
because: Investors and members of your board of
directors will not be willing to risk their personal
assets to serve as a corporate director or officer,
no matter how heartfelt their belief in your company.
Lastly, employment practices suits constitute
the single largest area of claim activity under
D&O policies. Over 50% of D&O claims are
employment practices related.