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Directors Officers Insurance
D&O and EPLI Coverage
D&O or Directors & Officers Liability Insurance is a critical piece of corporate insurance. Just as important for every employer is EPLI, which stands for Employment Practices Liability Insurance. Litigation has become an unfortunate but very real part of life for those who have the privilege of positions of leadership in today’s business world. Directors and officers of corporations and nonprofits face the potential of being personally named in suits related to the organizations they serve. Employers of all types are finding that the regulations related to Employment Practices become more complicated by the day, increasing the risk of employment related lawsuits and claims. Capstone provides experience, expertise and protection related to these ever growing areas of risk management.
Who Needs D&O Insurance and Why?
Public and privately owned companies and nonprofit organizations which have a board of directors and/or corporate officers should have D&O insurance coverage for their board of directors and officers. The primary reason is the protection of the personal assets of the individuals who serve in these positions. Directors and officers can be held personally responsible for the actions of the organizations and companies they represent and will almost always be personally named in any suit against their organization. Without D&O coverage in place, these individuals open themselves up to an immense amount of risk from suits filed by employees, clients and stockholders.
Most individuals who serve in such positions will insist upon having D&O Insurance coverage in place before accepting the position. Likewise, investors are seldom willing to risk funding an organization that does not have sufficient D&O coverage in place.
EPLI Insurance for Businesses
Employment Practices Liability is one of the most overlooked areas of exposure for businesses. EPLI is a separate and distinct risk coverage package which is available and valuable to any business which has employees, regardless of size. Employers are at risks from suits brought by potential employees who may make claims of discrimination in the hiring process, as well as current and former employees who may file charges of discrimination, sexual harassment, wrongful termination or a host of other allegations.
EPLI Coverage for Your In-home Employees
Many individuals put themselves at risk in areas they don’t even realize when they become employers of in-home employees such as nannies, housekeepers, a governess or anyone else who is directly employed by the homeowner as an employee. EPLI insurance provides the coverage needed to protect against the same types of employment related suits that are listed above for the individual homeowner turned employer.