Don't Get Cut Off
Will your D&O coverage be there when you need it?
Lawsuits, scandals and corporate collapses have made even small companies aware of the need for directors and officers (D&O) liability insurance, which protects company leaders from personal liability and financial loss arising from actions they take in their professional capacity. Can you be sure your D&O coverage will be there if you need it? Steve Shappell, managing director of Chicago-based Aon Financial Services Group's legal and claims practice, says you can-if you understand two important concepts: rescission and severability.
D&O coverage can be rescinded if the insurer finds that you made a material misrepresentation when you applied for the policy. But what if one of your officers failed to disclose information and the others didn't know about it? That is where severability comes in.
Continue reading this article - and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5.
Entrepreneur Editors' Picks
-
When Her Parents' Restaurant Burned Down, This First-Generation Founder's Hot Sauce Brand Rose From the Ashes to Take on Corporate Giants
-
Not Hitting Your Goals? Here's How to Know If You Should Change Tactics or Strategy.
-
You Can Generate Your Own Viral LinkedIn Post With This Hilarious Tool
-
This Couple Lost Everything When the Housing Market Crashed. But Manifesting 'Magic' Helped Them Launch a Metaphysical Brand With 10 Stores.
-
The Best Software Solutions and Tech Providers in the Franchising Industry
-
This 18-Year-Old Student Wanted a Better Way to Keep Track of His School Work. So He Built an App — and a Business.
