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New Jersey Directors & Officers Liability Insurance (QUOTES, COST & COVERAGE)

Get New Jersey directors and officers liability insurance quotes, cost & coverage fast. NJ D&O covers directors and officers for claims made against them while serving on a board of directors and/or as an officer of a company either for nor non-profit.

New Jersey Directors & Officers Liability Insurance

As a NJ business owner, having the coverages that you need in order to protect your business, yourself, and your employees. While there are a lot of insurance policies available to shield your business, one type of coverage that many business owners overlook the importance of is New Jersey directors and officers liability insurance.

Many business owners assume that claims are filed against directors and officers of large, well-known public companies. However, this is a misconception. As a matter of fact, private and non-profit businesses that are on the small side and aren’t widely known are also at risk of facing directors and officers litigation.

Lawsuits are becoming increasing common in today’s business world. And, considering the fact that the cost of a D&O lawsuit could end up costing a business hundreds of thousands of dollars that could cause financial devastation, it’s important to make sure that you have New Jersey¬†directors and officers liability insurance¬†coverage.

Does My Business Need New Jersey Directors And Officers Liability Insurance?

If your business has a corporate board, an advisory committee, or has any other type of officer, you should seriously consider investing in a New Jersey directors and officers liability insurance policy.

You don’t have to make millions of dollars in revenue for your board of directors to have a personal lawsuit filed against them. Businesses that are on the smaller side and don’t generate a sizeable revenue are likely to need the protection that this type of coverage offers just as much, if not even more so, than large public companies.

What Does New Jersey Directors And Officers Liability Insurance Cover?

NJ directors and officers liability insurance offers protection for the personal assets of a business’ board of corporate directors and officers, as well as their spouses, if they are ever faced with a personal lawsuit. This includes any lawsuits that may be filed by employees, vendors, investors, customers, competitors and various other people, and suits may filed for real or alleged wrongdoings that have occurred while managing a company. This policy usually protects a business, too.

A New Jersey directors and officers liability insurance policy covers any legal costs, including attorney and court fees, as well as settlements, that may occur when a personal lawsuit is filed against a company’s corporate directors and officers.

Why is D&O insurance so important? There are a number of reasons why someone might decide to sue an officer of a business. Some examples include:

  • Using business money in a way that it is not intended to be used
  • Fraud
  • The misrepresentation of the assets that a company offers
  • A breach of financial duties that ends up causing financial losses or even bankruptcy
  • Not complying with laws that are established for the workplace
  • Misconduct or inappropriate behavior in the workplace, such as sexual harassment
  • Stealing the ideas of another business and making revenue off of those ideas
  • Theft of a competitor’s customer base

While New Jersey directors and officers liability insurance does cover a wide variety of lawsuit types, it is important to note that a policy usually does not cover any illegal actions or profits that may be made in an unlawful way.

What New Jersey Directors And Officers Liability Insurance Doesn’t Cover

D&O insurance typically does not cover (excludes):

  • bodily injury and property damage
  • fraud and dishonest acts
  • pollution
  • breach of contract

Most of the time, a NJ D&O policy will include endorsements with additional exclusions based on the applicant’s risk characteristics. These exclusions might relate to areas such as professional services, antitrust, medical malpractice, and publishing.

Types of Directors and Officers Liability Insurance Coverage

When it comes to D and O insurance, people who own a business have several options to choose from and can adjust their polices to their needs. However, there are three main types of coverage. This includes the following:

  • A-Side Coverage. This coverage protects directors, officers and in some cases, employees, for attorney fees, settlement costs, or judgments if a business is unable to cover them.
  • B-Side Coverage. This coverage shields the company for any losses that directors, officers and employees may experience if a business is unable to cover them.
  • C-Side Coverage. This is also known as entity coverage and it protects the company itself. This coverage my minimize the limits that are available to coverage for individual directors and officers.

How Much Does New Jersey Directors And Officers Liability Insurance Cost?

How much does New Jersey directors and officers liability insurance cost? There are several factors that affect the cost of directors and officers insurance coverage. The type of business you run, the amount of revenue you may, and whether or not there have been any legal claims filed against your company in the past are all factors that are taken into consideration when determining the cost of coverage.

Further Reading On Management Liability Insurance

NJ Directors And Officers Liability Insurance Quotes

New Jersey Insurance

Request a New Jersey Directors And Officers Liability Insurance quote in Anaheim, Bakersfield, Chula Vista, Concord, Corona, Elk Grove, Escondido, Fontana, Fremont, Fresno, Fullerton, Garden Grove, Glendale, Hayward, Huntington Beach, Irvine, Lancaster, Long Beach, Los Angeles, Modesto, Moreno Valley, Oakland, Oceanside, Ontario, Orange, Oxnard, Palmdale, Pasadena, Pomona, Rancho Cucamonga, Riverside, Roseville, Sacramento, Salinas, San Bernardino, San Diego, San Francisco, San Jose, Santa Ana, Santa Clara, Santa Clarita, Santa Rosa, Simi Valley, Stockton, Sunnyvale, Thousand Oaks, Torrance, Vallejo, Victorville, Visalia and all other cities in NJ.

The New Jersey Department of Insurance

The NJ Dept. of Insurance is the regulatory agency behind the insurance rules for the state of New Jersey. If you want to understand these rules, then this is definitely the agency that you need to focus on. Let’s start with limits within the state.

New Jersey Minimum Insurance Limits
  • For¬†auto insurance, New Jersey requires $15,000 per person and $30,000 per accident.
  • For¬†life insurance, there are certain regulations in place to determine how someone is able to get or offer life insurance, but there are no limits listed.
  • For¬†commercial insurance, insurance agents may offer broker or casualty insurance as well as covered property insurance, covered causes of loss, specified perils and open perils along with a number of coverage forms like builder’s risk, legal liability, building ordinance, glass, peak season, inflation guard and peak element.
NJ Insurance Regulations

As for regular insurance regulations there are a lot of things that New Jersey provides that you can look up. For example, there are deadlines for the insurer to pay the claim or deny it, deadlines for submitting paperwork to prove a loss for insurance reimbursement, specific information your insurance company is required to give you and regulations on what information you have to provide to your insurance company.

One of the New Jersey regulations calls for you to be treated by your insurance company in good faith. This means that your insurer must be considered of your needs and must communicate completely and honestly with you about your policy and everything that you need to know about it in order to make a good decision. In turn, you are legally obligated to be honest and cooperative with your insurance company when it comes to your claim.

You should also be aware that your insurance company is required to offer prompt, honest and complete communications. The company and all of its representatives must respond to your communications within 15 calendar days with a complete response based upon the facts that are known.

Finally, be aware that your insurance company is required to have a fair claims process. Unless it is specified in your policy, you do not have to use the forms that are provided to you by your insurance provider in order to make a claim. You can create a list of losses on your own if you need to. In addition, insurers are not able to ask for unreasonable proof of loss. If you provide photographic evidence or video of items that you lost, insurers are not able to ask you to provide additional information.

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