Directors & Officers Liability Insurance
Directors’ and Officers’ liability insurance is aimed at protecting the Directors and Officers of a company, trust, organization etc against their legal liabilities for financial loss suffered by third parties as a result of the wrongful act of the director and/or officer.
Directors and Officers liability claims affect directors, officers and employees serving in a managerial or supervisory capacity. Whilst serving a company of any size ranging from large to small, public and private, even non-profit organisations and membership associations they need comprehensive cover for liabilities that could arise from them being held liable for wrongdoings in conducting their managerial responsibilities.
•D&O insurance takes care of costly defense costs, thereby ensuring that a company’s cash flow remains unaffected. The cost of defending corporate lawsuits may exceed the net worth of most private companies. In some cases, the company may not be able to pay the defense costs as it may be prohibited by law.
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