When any company selects a board of directors, the right investment decision to make is to purchase an Orange County, CA Directors & Officers Liability Insurance Policy. If the company has investors, chances are very strong that one of the conditions the investors will insist upon when providing funding for your company will be that your company acquires an Orange County Directors & Officers Liability policy since the directors and officers can become the target of a lawsuit from shareholders, customers, employees, vendors, or regulatory agencies.
We also want to be clear this type of coverage is NOT Errors & Omissions Liability Coverage. Sometimes clients do confuse Directors & Officers Liability Insurance with Errors & Omissions Liability Insurance. These two types of professional liability insurance coverages are not the same. An Orange County Errors & Omission policy is concerned with performance, negligence, and failures with respect to your company’s products and services, not with the duties and performance of your company’s management team. Companies such as accountants, business consultants, and insurance brokers carry this type of insurance coverage. We highly recommend to our clients that it would be beneficial for these types of companies to carry both Orange County, CA Directors & Officers Liability Insurance and Orange County, CA Errors and Omissions Liability Insurance.