While it’s a known fact that public companies can easily be sued or run into legal trouble, many business owners don’t realize the same can happen to private companies. D&O insurance for private companies is just as important, though. Here’s why it’s necessary to prevent problems and save businesses money.
Directors and Officers Need Protection for Their Position
Just like with a public company, directors and officers can be sued for a variety of reasons, even if a company is private.
Among these are:
A customer or other individual getting discriminated against
Lawsuits by shareholders
Non-compete agreements