All insurance agencies need to hire top-tier leaders in order to not only grow their talent bases, but also to ensure professional and secure futures for their enterprises. Whether you are hiring a president, CEO, CFO or a member of the board of directors, you want the best of the best within your operation.
To protect both yourself and other principals in case their decisions lead to mistakes, consider buying directors & officers (D&O) insurance. It is not only helpful to the agency in general, but it can also be a way to attract new hires to your organization. Here is a bit more information.
What’s a D&O Policy?
If you are a C-suite executive at the very top of an insurance agency, your own mistakes are likely to have the furthest reaching effects on all aspects of the enterprise. And, even if you are a C-suite executive, there will be people under you who can still make weighty decisions. If they make the wrong choices, it could reflect as poorly on the business as if you yourself made the mistake, and you could be one of the ones who would face the blame for the issue
You have to be prepared to face these challenges if and when they do arise, and it is D&O insurance that will help you do so. A policy can prove to your high-level employees that you recognize their importance and respect their security.
Liability insurance, in any form, exists to help the insured party—in this case, your business—repay third parties who sustain damage that is the insured’s fault. For example, if a client slips and falls in your business, they might sue you, and general liability coverage can help cover the resulting costs.
D&O insurance is a liability policy, but it is for more specific instances of trouble—those that arise from the mistakes or decisions of business principals. In a general sense, if a director makes a mistake, like misreporting earnings, this could harm a company, shareholders and many others outside the company’s walls. D&O policies help respond to such situations.
Why D&O Policies Support Talent Development
In many cases, a lawsuit targeting your agency might target the directors as well. If a director is named individually, and should they have to make restitution to the affected party, then their own money and assets could come under threat. A D&O policy can ensure that the party in question has additional resources available to protect themselves.
D&O coverage is a strong benefit for businesses to offer to their current directors and their prospective hires. It can help company leaders feel more secure in their decision-making capacities. It also can show them that the company wants to invest in them as individuals they can trust.
In order to hire the best talent, you might decide to offer D&O coverage as an agency perk. Even if you are the top of the business structure, you can individually benefit from these policies. That is why it is an important investment to make.