D&O insurance is important for smaller and larger organizations. This includes executives in retail organizations. Directors & Officers Insurance often seems to apply only to large companies. However, you do not always have to have a large board to need this coverage.

Any executive running a company could face significant liability risk. It is your job to lower that. You can do that with the help of your business insurance agent.

What Coverage Does It Provide?

D&O insurance covers executives within your business. Directors and Board Members responsible for the operation of the business need it.

Retail executives should qualify here. This insurance provides protection against claims made against these individuals. The claims may name these executives in committing wrongful acts. The acts may occur at any time during their official capacity. This policy provides important coverage today. Discrimination, harassment, and other negligence-related claims are not uncommon.

What's the risk of not having it? In general, these individuals may otherwise hold personal responsibility in some matters. This can be very risky for any Board Member.

What Types of Claims Can This Help With?

Every scenario is a bit different. In the retail industry, this is essential coverage. Many companies are seeing bankruptcy filings. Others are downsizing. The decisions of the company's Board can impact thousands of people's livelihoods. Many types of claims apply here. Some examples of claims include the following:

• Human resource and employment issues such as wrongful termination and discrimination apply.
• Claims of sexual harassment apply.
• Claims of wrongful acts about bankruptcy filings.
• Claims from companies owed funds.
• Claims about attempts to collect investments.

This insurance may cover any settlement requirements. It also may cover legal defense. It also often covers related court costs. Each policy differs, but most offer some outstanding features. Most importantly, they safeguard your business from very expensive claims. These claims are more common today than previously.

This is a complex area of business insurance. Work closely with your agent. Determine what risks your individual retail establishment faces. Then, customize a plan to address those concerns. Work with your agent to select the appropriate level of coverage. In the retail sector, D&O insurance remains viable. As companies change, this insurance increases in value. It can keep an organization financially sound for the long term.

Take a moment to discuss D&O insurance with your business insurance agent. Find out if it is time for you to invest in it.

Need business coverage? Call McFarlin Insurance Agency, LLP at 410-312-7800 and we can help you get a policy quote that is right for you.

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