You want to make sure that you get the most out of your insurance policy. Even in policies that are tailored towards specific individuals, such as directors and officers for private companies, there are certain phrases that you should look out for and understand. Below are some of those key terms.
This does not always cover everyone in the business. In fact, some benefits may be specific to the business and exclude individuals. You want to make sure that you understand who and what all is covered for each benefit.
Maximum or Cap
Some benefits may have a limit on the amount that will be paid towards them within a certain time frame. These terms may reset after a certain period of time, usually a year, while others may be for a lifetime. Therefore, it is critical that you pay attention to these things.
Restrictions, Requirements or Stipulations
Some benefits may be activated after certain things are done or time frames elapse, while in other situations they may not be available after certain occurrences. It is important that you are aware of all such instances and conduct business accordingly.
There are other terms that you will want to be aware of, but these are some of the most common and important ones to be aware of in your policy for directors and officers for private companies. For more information or to choose a plan for you, consult with a provider.