Why D&O Insurance Is Important


Hidden Exposure

Every company has leaders. It’s a fact so obvious it hardly bears thinking about, but it turns out smart companies do think about their D&O (directors and officers), particularly in terms of the damage they could cause. The people who make the big decisions could make unpopular choices that invite accusations of mismanagement or wrongdoing. That’s why D&O liability coverage is a critical part of well-designed insurance for e-commerce companies.

Big Decisions Equal Big Risks

E-commerce often attracts large infusions of venture capital. Add shareholders and you have a pool of investors deeply invested in what comes out of boardrooms. Because e-businesses are under increased pressure to be nimble, their officers may make snap judgments that could seem incompetent to outsiders. Investors who feel their money is being put at risk may be prompted to pursue damages. There is also the possibility of intentional misconduct on behalf of executives. It behooves a company to insulate itself from the risk these possibilities pose by adding an insurance for e-commerce plan that includes strong D&O protections.

You Can Limit Your Liability

There are many avenues for risk exposure when you’re engaged in commerce, whether brick-and-mortar or online. Take care to shield your business from liability from all angles, including from the boardroom. Consult an expert in insurance for e-commerce to assess your company’s protection.