Protect Your Personal Interest With IDL Insurance
The DFW Metroplex is home to over 10,000 corporate headquarters as well as hundreds of thousands of not-for-profit, public and private organizations and corporations. Serving under each of those organizations is a group of influential and prominent figures that compile the Board of Directors. In order to protect every individual that sits on each board, organizations purchase and provide Directors and Officers Liability Insurance. As time has progressed and litigation has evolved, the exclusions and specifics in each D&O policy have become evident and individuals are starting to feel the repercussions of fully relying on the originally provided policy. Although D&O Insurance is necessary, it has become increasingly more important to consider an individual specific coverage such as Individual Directorships Liability Insurance. Swingle Collins & Associates would like to highly urge each member that falls under this category to take control of their own personal interest and consider implementing Individual Directorship Liability Insurance into their coverage repertoire. Differing from a D&O policy, Individual Directorship Liability Insurance allows each individual to be the named insured rather than the entity itself. This provides opportunities and benefits such as:
- Protection across all boards that the individual may serve including all public, private and not-for-profit organizations
- Continued individual coverage regardless of the following -
- The D&O insurance carrier becoming insolvent
- The policy running out of limits
- Failed renewal of the policy
- Potential fraud on the D&O application
- Protection against D&O exclusions such as insured vs. insured cases and application warranties
- Assurance that in a bankruptcy situation, that coverage would be available for the individual
Another substantial reason why each member of a board should consider investigating Individual Directorship Liability Insurance is because most organizations and corporations will pay for this coverage while you serve on their board. Gaining this protection for yourself as an individual will secure your future as a board member and allow you to be in complete control of your personal interests.
Swingle Collins & Associates has a seasoned and professional team of personal insurance agents that are eager to offer their clients the expertise and knowledge they have on this subject matter. Do not hesitate to acquire Individual Directorship Liability Insurance if you are or will be serving on a board in the near future. The cost to purchase an IDL policy is far cheaper than the exposure to the risk itself.