Directors and Officers Insurance
(D&O)
What is directors and officers insurance?
Directors & officers insurance, also known as D&O, covers corporate directors and officers in the event that they’re sued by employees, competitors, vendors, investors, customers, or other parties for alleged wrongful acts in managing a company.
This could include allegations such as:
A member of the board over a decision related to the company
Company legal fees associated with the lawsuit
The policy will reimburse settlements or defense costs that result from covered claims.
Do I need it?
A D&O policy will allow directors and officers peace of mind at the company. They will not have to risk their own personal assets to cover legal fees if a lawsuit were to occur.
What does it cover?
Some of the most common claims result from misuse of company funds, breach of fiduciary duty, or misrepresentation of company assets.
In the event of a claim against directors and officers, a D&O policy can help navigate the lawsuit and cover expenses. It will also provide indemnification between the personal assets of the directors and officers.
