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Directors & Officers Liability Insurance

What is Directors & Officers Liability Insurance?

Directors and officers liability insurance covers a company’s directors and officers for claims made against them. Also known as D & O Insurance, the policy protects against allegations of wrongful acts when acting as company executives. Wrongful acts may consist of misstatements, errors, breaches of duty and more.  Directors & Officers Liability Insurance is recommended for companies with a corporate board or advisory committee. Many investors and board members may refuse involvement unless this protection is in place.

What are the benefits of Directors & Officers Liability Insurance?

Employees, stockholders and customers are able to make claims against a company and its directors. Whether grounded or frivolous, the resulting legal expenses and reputation damage can be extensive. Directors and officers can be held responsible for the acts of a company, which puts their personal assets at risk. Directors & Officers Liability Insurance protects companies and their officers from criminal, civil and regulatory proceedings from allegations of wrongful acts.

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