--- title: Benefits of D&O Insurance For Private Companies description: Learn more about the benefits of directors and officers (D&O) liability insurance and how it can protect your board of directors. --- - [** ](https://twitter.com/clarkesampson) - [** ](https://www.linkedin.com/company/clarke-%26-sampson-inc) - [** ](https://www.facebook.com/clarkeandsampson) [**703-683-6601](tel:17036836601) [     Client Portal](https://portal.csr24.com/mvc/6601690) [![clarke&sampson](https://blog.clarkeandsampson.com/hubfs/Clarkeandsampson_November2018%20Theme/images/logo.png "clarke&sampson")](http://www.clarkeandsampson.com/) - [** ](https://twitter.com/clarkesampson) - [** ](https://www.linkedin.com/company/clarke-%26-sampson-inc) - [** ](https://www.facebook.com/clarkeandsampson) [**703-683-6601](tel:17036836601) [     Client Portal](https://portal.csr24.com/mvc/6601690) # Clarke & Sampson Blog # Benefits of D&O Insurance For Private Companies Scott Jefferson | Thursday, April 1, 2021 Share | Facebook Twitter [Email ](mailto:?body=https://blog.clarkeandsampson.com/blog/benefits-of-do-insurance-for-private-companies) With today's emphasis on corporate transparency and accountability, an organization's directors and officers face a countless number of exposures. Regardless of your company's size or mission, the legal costs associated with a lawsuit can be crippling for both the organization and your directors and officers. Many wrongly assume that directors and officers (D&O) insurance is only necessary for publicly traded companies. However, privately held organizations can just as easily fall victim to lawsuits that can impact the company, its officers and board, making D&O insurance a must. Specifically, D&O insurance can provide the following benefits to privately held companies: **Legal cost reimbursement.** In the event of a claim, D&O policies can provide legal cost coverage for a variety of claims. Specifically, D&O insurance can provide reimbursement to leaders of private companies following allegations of wrongful acts, financial mismanagement, errors in judgment and negligence. Because D&O lawsuits can occur without warning and easily reach six figures, it's critical that private company leaders arm themselves with the right policy. **Peace of mind.** D&O claims can come from a variety of sources, including employees, clients, contractors, and government bodies. For private companies, claims from creditors and competitors are particularly common. D&O insurance ensures that private company leaders are protected regardless of where claims originate, providing timely and effective coverage. **An improved ability to attract new directors.** Simply put, having a strong D&O policy in place makes board seats more attractive. This is because purchasing insurance shows prospective leaders that you take D&O risks seriously and are prepared to protect them in the event of a claim. **Coverage for regulatory exposures.** Regulatory agencies are increasing their scrutiny of private companies, making D&O insurance all the more important. Paying the cost of an attorney to defend a director or officer against a government enforcement action is expensive, and private company D&O insurance policies can help with these types of expenses. To learn more about D&O insurance, its cost, considerations, and more, contact us today.    [![Contact Us](https://no-cache.hubspot.com/cta/default/289889/5cb3c608-dddc-4607-ae3b-a0869c773743.png)](https://cta-redirect.hubspot.com/cta/redirect/289889/5cb3c608-dddc-4607-ae3b-a0869c773743) Share | Facebook Twitter [Email ](mailto:?body=https://blog.clarkeandsampson.com/blog/benefits-of-do-insurance-for-private-companies) #### Contact Clarke & Sampson, Inc Office: 703-683-6601 Fax: 703-739-8967 228 S.Washington St. Ste. 200 Alexandria, VA 22314 [Send an Email](mailto:sjefferson@clarkeandsampson.com) - [** ](https://www.facebook.com/clarkeandsampson) - [** ](https://twitter.com/clarkesampson) - [** ](https://www.linkedin.com/company/clarke-%26-sampson-inc) The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by Agency Revolution to provide information on a topic that may be of interest. Agency Revolution is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2018 Agency Revolution. 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