In recent years, directors and officers liability insurance has become a core component of corporate insurance. Directors and officers liability Insurance (D&O) protects the directors and officers of a company, or the organization itself in the event of a loss due to the legal action brought for alleged wrongful acts in their capacity as directors and officers. Coverage can also extend to defence costs arising out of criminal and regulatory investigations/trials.
Wrongful acts include omissions, errors, misstatements, misleading statements, neglect or breach of trust or duty. Beneficiaries are the directors, officers or the corporation itself. Suits can be bought for various reasons. Shareholders might sue for insider trading. Creditors might sue for misrepresenting the financial statement of the company. Competitors might sue for anti-trust or unfair trade practices.
The responsibility that Director’s & Officer’s have in areas such as health, safety, environment, sustainability and legacy are significant. For all Directors and Officers we propose to effect an insurance that gives them personal protection against the consequences of any legal challenges for their perceived wrongful acts.
The cover we could obtain for the insured will cover the personal liability of the company directors and officers as individuals and also any costs incurred by the company on third parties to protect the company.