Liability exposure is a big concern for any business owner, perhaps particularly in the craft beer industry. That’s why Beall Brewery Insurance works with each client to craft a comprehensive brewery insurance package to address issues such as workers compensation, general liability, and liquor liability. And certainly most craft brewery owner-operators understand the need for those types of coverage.
But directors and officers liability insurance may be less well understood than these more familiar types of insurance—and the need for D&O insurance, as it’s often called, may be not understood at all.
Directors and Officers Liability Exposures
Many craft breweries have outside investors. These investments can be vital to the strength of the craft brewery. They can also expose the brewery leadership to a variety of D&O exposures, such as:
- securities litigation
- regulatory actions
- allegations of misrepresentation
- other breaches of fiduciary duties
Signs of financial weakness, perceived conflicts of interest, and a merger or acquisition can act as a trigger to shareholders, customers, or even employees to make legal claims against directors and officers of the business. It’s also important to note that directors and officers can be held personally liable for those claims. Such exposures can make it difficult to attract the quality leaders any brewery needs to survive and thrive.
Directors and Officers Liability Insurance Coverage
A D&O policy can provide security for the business and for those leaders. Policy specifics may differ, but can include
- coverage of defense costs, settlements, and judgments associated with claims
- protection for the organization’s assets
- protection for the personal assets of directors and officers
- protection for the assets of a director’s or officer’s spouse, domestic partner, or estate.
It can even provide added protection if the brewery experiences bankruptcy or insolvency.
Liability exposures can be devastating without the proper coverage—and a good directors and officers liability insurance policy can provide peace of mind not only for a craft brewery’s leadership, but for the future of the business itself.
For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of niche businesses, such as craft breweries, that require specialized insurance packages and knowledge. With California offices in Redlands and Newport Beach, Beall Financial and Insurance Services serves clients nationwide.
