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D&O Liability Insurance

A Comprehensive Guide to Directors and Officers Liability Insurance

by Skills.Money
in Blog, Insurance
Reading Time: 3 mins read
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Directors & Officers (D&O) Liability insurance protects the people who serve as directors or officers of a company from personal losses if the organization’s employees sue them, vendors, customers, or other parties.

D&O insurance can cover defense costs, settlements, and other costs associated with wrongful acts, allegations, and lawsuits. In addition, directors’ & Officers’ insurance is essential to a corporate risk management strategy and can help your Company attract and retain qualified executives and board members.

Typical claims under Directors and Officers Liability Insurance arise from shareholders, customers, regulators, and competitors (for anti-trust or unfair trade practice allegations). Directors’ and Officers’ Liability Insurance cover should be extended to directors or officers previously employed by the Company. The fact that a director is dead may provide a good reason not to be sued, but legal action can be taken against the executors and beneficiaries of his estate.

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