Directors & Officers Insurance
Often referred to as D&O Insurance, Directors & Officers insurance protects individuals serving as directors or officers of a company from incurring a personal loss if they are sued by the organization’s customers, vendors, employees, or others. Typically, this protection excludes individuals found guilty of misconduct, fraud, or other criminal activity, as it relates to the lawsuit.
The coverage covers the cost of the lawsuit including attorney and other fees.
While the D&O liability insurance policy is not mandatory, is important to corporate governance, as it protects the directors and officers against personal liabilities. Also important, it can provide relief to the victims of corporate governance breakdowns.