Directors and Officers (D&O) liability insurance is designed to protect the personal assets of a company’s executives from lawsuits related to their management decisions. It covers legal defense costs and settlements arising from allegations of a “wrongful act,” such as a breach of duty or mismanagement, and is often required to attract and retain qualified board members.
- What It Is: A policy that protects the personal assets of a company’s corporate directors and officers from lawsuits related to their management decisions.
- What It Covers:
- Legal Defense Costs & Settlements: For claims of mismanagement, breach of fiduciary duty, or other “wrongful acts.”
- Who It’s For: Public, private, and non-profit organizations.
- Key Considerations: Investors and board members often require a company to have D&O insurance before they will join.