Common Risks Faced by Directors and Officers

Running a business is no easy task, especially when they are responsible for making decisions on behalf of the company, its employees, and their financial future. While there is no shortage of exposures these professionals encounter, there are certain crimes that directors and officers often face. As we explore these common exposures, ensure your clients’ operation is secured from financial liability with a comprehensive D&O Insurance Program.


In today’s complex business structure, there are countless ways for corruption to occur. The Security Exchange Commission (SEC) and the Department of Justice (DOJ) made a grand effort to prevent these schemes by implementing the U.S. Foreign Corruption Practices Act (FCPA). Any instance in which executive officials accept or offer bribes will result in severe legal and financial consequences.


Inside Counsel identifies these offenses as insider trading, false representations of product performance and breaches of fiduciary duty, which can also lead to investigations. Fraud is a broad term and can include falsifying financial documents, stealing company funds, misreporting income, failing to report earnings to the IRS, and more.


In an undoubtedly digital age, businesses and their executives are subjected to a wide variety of cyber-crimes. The right internal controls and protective procedures can prevent one director or officer from having too much control of personal or potentially incriminating information. These preventative measures can also deter a disgruntled or disloyal employee from providing confidential data to a third party. Further, experts recommend that your clients instill a protocol to preventing and reporting cyber-attacks per their state’s laws.

About Genesse General

At Genesee General, we specialize in providing the right insurance policies that your clients need. For 34 years, we have continued to provide quality and affordable solutions. For more information, contact us today at (800) 282-8755.