How much are wrong business decisions worth to your company?
According to a recent study, a majority of decision-makers are not using all the resources available to them. Research by PricewaterhouseCoopers (PwC) found that only one-third of organisations are highly data-driven, according to executives.
A huge 94 per cent of respondents said their business is prepared to make big decisions, but only one-third used a wide range of data as their primary source of information before choosing a strategy.
Perhaps most importantly of all, 1 in 3 of these executives put a value on their big decisions of US$1 billion or more.
So with businesses relying so heavily on individual decisions, how protected is your company against bad ones?
It takes many people make a business work, but the big decisions usually come from the top. This can help businesses act with speed in an often competitive market environment, but it also runs the risk of individual error.
By purchasing directors and officers insurance individuals can protect themselves from a variety of bad decisions.
The types of people eligible for this type of insurance include:
- Directors, executive officers and secretaries.
- A legally defined natural person.
For example, business owners may wish to cover themselves with this type of insurance in case any of their decisions come under scrutiny for being negligent or a ‘wrongful act’. Directors and officers insurance will ensure that, if the worst happens, their personal assets are secure.
Professional indemnity insurance
If part of your business includes providing advice or services to others, you could be open to professional indemnity lawsuits.
Individuals can find themselves legally liable for any error, omission and actual or alleged negligent act. With professional indemnity insurance, the costs of investigating, defending and/or settling a claim are often covered.
Depending on the nature of business, creating watertight professional indemnity cover can be a complicated matter. Specialised packages can be created to also insure property damage, public liability, product liability and personal injury, depending on a company’s risks.
To find out more about specialist packages to protect you and your business from bad decisions, contact one of our local offices.