What personal exposure does a Georgia company face without directors and officers and employment practices coverage?

Without directors and officers and employment practices coverage, the people who run a Georgia company can be sued personally, and their own homes, savings, and other assets can be at risk. These two coverages exist specifically to protect leaders and the business from claims that target decisions and how employees are treated.

Directors and officers liability, often called D&O, protects executives, board members, and managers when they are sued over business decisions. Employment practices liability, often called EPLI, protects the company and its leaders against claims from employees.

Here is the personal exposure you face without these coverages:

• Personal lawsuits over management decisions, where an investor, lender, or competitor sues leaders directly.
• Employee claims for wrongful termination, discrimination, harassment, or retaliation, which are among the most common reasons small companies get sued.
• Out-of-pocket defense costs, since defending even a baseless claim can cost tens of thousands of dollars before any judgment.
• Personal assets at risk, because without coverage, a leader may have to pay defense and settlement costs from personal funds.

For example, a former employee of a Gwinnett County company files a discrimination claim after being let go. Even though the company believes the termination was fair, the legal defense runs $70,000 and the matter settles for $40,000. With EPLI, the policy handles those costs. Without it, the company and possibly its owners pay that bill themselves.

These exposures are real for nonprofits, startups, and family-owned businesses, not just large corporations. We can help you put the right management liability protection in place so a single claim does not threaten your personal finances. Request a free coverage review and we will assess where your leaders are exposed today.