What is the definition of Directors and Officers Liability Insurance?

Directors and Officers Liability Insurance provides protection against losses brought about by the acts of a company's officers and directors. This can refer to liability damages when the company is sued because of officers' and directors' mistakes (whether by negligence or by omission). This coverage may also be expanded to include liability caused by employment practices.

This can also refer to payments made to the directors or officers when they face a lawsuit for alleged mistakes or wrongful acts. It is given to cover their defense costs or damages they will have to pay. In some U. S, states, employers are required to indemnify their directors or officers in the event of a lawsuit.

Lawsuits may come from different sides - from customers, shareholders and regulators. Even competitors may sue because of unfair trade practice or anti-trust allegations.

It must be noted that insurance companies will not pay for claims when the officers or directors commit an illegal act intentionally.

• Difference in Conditions
• Assigned Risk Plans
• Assets
• Asset-Backed Securities
• Assignment