Directors & Officers Liability
Directors and Officers Liability Coverage* protects top management of your organization from a "wrongful act" claim against them in their capacity as directors. "Wrongful act" is generally defined as any breach of duty, neglect, error, misstatement, misleading statement, omission or other act done or wrongfully attempted by a company's directors or officers; however, this definition may vary slightly from insurer to insurer.
Note that directors and officers may be held personally liable for company business activities or acts of company employees, even if the |
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directors and officers did not participate in those acts; further, if the company declares bankruptcy and its assets are not sufficient to compensate a D&O claim, directors' and officers' personal assets may be at stake.
Directors and officers can also be held liable for legal fees and other expenses; D&O Liability insurance can provide coverage for defense- related expenses. It does not cover claims that are based on bodily injury or property damage liability as these would normally be covered under our standard General Liability Insurance. |
*Coverage subject to terms, conditions and exclusions of the specific policy. Ask your agent for more details. |