Directors and Officers/Errors and Omissions Insurance

n today's litigious environment, it is extremely important for business professionals to have coverage to address possible risks associated with serving as an executive or board member. Courts often hold such individuals personally responsible for abuse of authority, financial mismanagement, libel, slander, and other acts in suits brought by shareholders, creditors, customers and/or employees.

Hempkins Insurance provides both Directors and Officers (D&O) and Errors and Omissions (EO) insurances. The following are some of the more common benefits under these policies:

Director and Officers' Insurance:

• True entity coverage recognizing that the organization may be the only defendant named in a lawsuit
• Coverage for breach of employee contract claims available
• Coverage for defense costs up to $25,000 for any actual or alleged breach of contract agreements other than breach of employment contract claims
• Wrongful act which includes any actual or alleged Employment Practices Act
• Per diem payments for expenses incurred as a result of the attendance of any individual insured at any hearings, trials or depositions
• Spousal coverage

Errors and Omissions' Insurance:

• Defense afforded for groundless, false or fraudulent allegations
• Policy allows for insured consent to settlement
• Predecessor firm covered provided
• Coverage extends to independent contractors
• Wrongful act not imputed to innocent partners