Directors and officers in a staffing agency have corporate and personal liabilities. Staffing agencies can face lawsuits for several different reasons. To protect your company, you need D&O insurance.
What Does D&O Insurance Protect Against?
Directors and officers insurance protects your personal assets against claims made by customers, investors, employees or other individuals. These lawsuits are for alleged wrongful acts. This is a coverage that isn’t generally provided in general business liability coverage. D&O coverage covers the legal fees, settlements and other costs associated with the lawsuit.
What Are the Types of D&O Insurance?
When it comes to D&O insurance, you can have a separate policy or you can have a bundled policy. Bundled policies might include other business liability coverages, such as Employment Practices Liability. You need D&O insurance because it covers several common risks, including:
- Breach of fiduciary duty
- Misuse of company funds
- Theft of intellectual property
The cost of your policy will depend on the type of staffing agency, your agency’s revenue and how much debt you have.
There are several reasons that staffing agencies may face lawsuits. D&O insurance for staffing businesses is critical. Without D&O insurance, your company could be devastated by the cost of lawsuits. Between legal fees, settlement costs, you need insurance.