Risks

Among the risks if your company is not paying proper attention to the Best Practices for mitigating director and officer liability are:

• Unlimited personal liability for directors and officers.
• Inability to recruit and retain the best possible directors and officers because they're worried about unlimited personal liability.
• Your company's cash flow could be drained by the expense of defending directors and officers.
• Your directors and officers won't take appropriate risks to maximize the performance of the company if they're overly sensitive to their personal risk.
• You're likely to be spending too much on your D&O insurance.
• Even if you're paying the appropriate amount for your insurance, you may not be getting the proper coverage.

Opportunities

Among the opportunities if your company follows Best Practices are:

• Protection for your corporate directors and officers.
• The ability to recruit the finest individuals for those roles.
• Protection for your company's balance sheet against lawsuits.
• The assurance that you are spending no more money than you need on this coverage, and therefore, the assurance that you have maximum resources for other company needs.
• The reassurance to company directors that, at least in this regard, the company is being well run.