Directors and officers liability insurance provides coverage for specific risks of directors, officers, and other high-ranking executive professionals. D&O Insurance pays for claims arising from; release of information deemed confidential, poor investments made by the officer, unlawful acts, firing and hiring issues, conflicts of interest, and gross negligence. Claims of this nature are being seen in businesses with increasing frequency.
D&O insurance will cover damages and legal expenses that are the result of managerial actions or decisions resulting in financial loss. Unfortunately, those who serve as officers and directors can be held personally liable for the resulting damages if this coverage isn’t in place. A Directors and Officers liability insurance policy can help you attract and maintain qualified executives and board members.
D&O Liability policies have two sides:
Directors and Officers coverage-related losses originated from the following sources:
Direct and Derivative Shareholder/Investor Suits
Government and Regulatory Agencies