While an LLC does protect an individual’s personal assets in case of litigation against the company, it does not ensure that the principals involved with the company are not above reproach, and may not stand to face litigation which could adversely affect their financial situation. As a result, it would be to your advantage to make sure that you are fully familiar with DIRECTORS & OFFICERS LIABILITY INSURANCE AND YOUR ANTHEM, ARIZONA LLC.
“Someone is often held responsible for the actions of a company, including an LLC,” Jim Bivona of Bivona Insurance Group, LLC, an Independent Insurance Agency that serves the Phoenix Metro area regarding Insurance including Phoenix, Scottsdale, Glendale, and Peoria, Arizona to name just a few, shared, “and most frequently that ‘someone’ is the Directors and Officers.”
This particular form of Insurance is, without a doubt, one of the more complicated to fully understand, as there are a host of nuances that need to be considered. These include, but are not limited to:
- A full understanding of the “Claims Made” vs. “Occurrence” aspect of the Policy.
- Fully understanding what a “Claim” is in this particular type of Policy.
- In regard to “Loss,” the D & O Policy stipulates, what, exactly, will be covered. Terms that need to be fully understood here include Indemnity Issues, Attorney’s Fees, and those costs not covered!
- There are, of course, “Wrongful Acts,” for which your Policy may not be able to help you. Knowing what these are in the jurisdiction you are operating is paramount in making sure you have proper protection.
- As might be expected, the more complex the organizational structure involved the more “particular challenges” might be encountered.
- “I think,” Bivona added, “that while I always suggest an Independent Advisor be used when searching for Insurance, for D & O Coverage it is especially imperative!”
As previously mentioned, the complexity of determining the proper D & O Coverage is intensified because of the fact that there are so many mitigating circumstances to be considered. As a result, you should contact Jim Bivona at 623-256-1000 with any questions, and he will be happy to discuss this concept with you in greater detail, and suggest some ways you may be able to improve your Business Coverage.
To learn more about the BIVONA INSURANCE GROUP, LLC go to www.bivonainsurance.com.
(To learn more about this issue, check out “DIRCETORS & OFFICERS INSURANCE”)