Directors & Officers Insurance (D&O)
What is directors and officers insurance?
Directors and officers insurance (D&O) protects corporate directors and officers in the event they are sued by employees, competitors, vendors, investors, customers, or other parties for alleged wrongful acts in managing a company.
This coverage may include allegations related to:
Decisions made by board members
Legal fees associated with lawsuits
The policy reimburses settlements or defense costs that arise from covered claims.
Do I need it?
A D&O policy provides peace of mind for directors and officers by protecting their personal assets from legal fees and liabilities in the event of a lawsuit. This coverage is essential for ensuring that leaders can focus on managing the company without the fear of personal financial risk.
What does it cover?
D&O insurance typically covers claims arising from:
Misuse of company funds
Breach of fiduciary duty
Misrepresentation of company assets
In the event of a claim against directors and officers, a D&O policy can help manage the lawsuit and cover associated expenses. It also provides indemnification, protecting the personal assets of the directors and officers.