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Old 12-09-2019, 11:22 AM   #1
taller21
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Default Do directors of a small business corporation need to have insurance?

Do directors of a small business corporation need to have insurance for their liability related to their duties? Is it legally required?
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Old 12-09-2019, 05:20 PM   #2
AFFA
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Default Re: Do directors of a small business corporation need to have insurance?

I wish to inform you that having directors insurance is generally optional and thus they may or may not keep such insurance policy.

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Old 12-09-2019, 11:16 PM   #3
taller21
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Default Re: Do directors of a small business corporation need to have insurance?

Thanks.
It seems that is right.
I also called the Delaware SOS and they basically said the same

THX!!!!
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Old 12-09-2019, 11:16 PM   #4
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Default Re: Do directors of a small business corporation need to have insurance?

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Originally Posted by taller21 View Post
Do directors of a small business corporation need to have insurance for their liability related to their duties? Is it legally required?
There's no law that mandates it. The corporation itself can require its directors and officers to have it. And where it is optional the directors and officers would be foolish not to have it because they can be sued individually for their mistakes.

It's called Directors and Officers Liability Insurance and can be easily added into the corporate insurance program.
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Old 12-09-2019, 11:19 PM   #5
taller21
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Default Re: Do directors of a small business corporation need to have insurance?

All of these responses are really helpful. Thanks again!
I am glad we have the flexibility.
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Old 01-02-2020, 01:25 AM   #6
Lexus
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Default Re: Do directors of a small business corporation need to have insurance?

Directors and officers liability Insurance is liability insurance payable to the directors and officers of a company, or to the organization itself, as indemnification for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. It is not a mandatory requirement.
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