Protects company directors and officers from legal claims resulting from their actions or decisions.
Directors Liability Insurance, also known as Directors and Officers (D&O) Liability Insurance, is designed to protect directors and officers of a company from legal claims made against them about their actions or decisions made while acting in their official capacity.
Directors and officers of a company have certain legal responsibilities and duties to act in the best interests of the company and its shareholders. If a director or officer is alleged to have breached these duties, they can be held personally liable for any resulting losses or damages. D&O insurance provides coverage for legal costs and damages that may arise from such claims, including claims related to:
The policy covers the costs of legal defence and settlement or judgment payments, up to the policy limit. The coverage is typically available to directors, officers, and the company itself, and may also extend to other employees or agents of the company in certain circumstances.
Here are some common D&O risk scenarios that companies and their directors and officers may face: