Directors and Officers Liability
In today’s increasingly complex economic environment, the consequences of any given business decision can cross the line and put a decision maker’s personal assets at risk.
Directors and officers liability insurance
Actions brought against directors and officers based upon actual or alleged wrongful acts arising from the execution of their day-to-day duties and management functions can result in a D&O claim. D&O liability insurance protects the personal assets of directors and officers from catastrophic financial loss in the event of such a claim. The D&O policy also provides coverage for the organization.
It is common for directors to require that a company purchase D&O liability insurance before they serve on its board. Litigation expenses alone can amount to millions of dollars. D&O coverage can help protect the directors and officers from personal financial loss relating to these expenses.
Defense costs -- a significant expense
Defense expenses erode the limit of liability and can significantly impact the available insurance for directors and officers.