Directors & Officer’s Liability Insurance protects anyone who serves as a Director or Officer of a for-profit business or non-profit company or organization. This type of policy insures directors, officers and their spouses against personal losses in the event they are sued as a result of wrongful acts in the managing of a company. It can also cover the company’s legal fees and other costs resulting from the lawsuit.
Reasons why companies need Directors & Officers Liability Insurance?
- Violating Fiduciary Duties Resulting in Financial Losses
- Falsification of a Company’s Assets
- Misappropriation of Company Funds
- Failure to Adhere to Workplace Laws
- Theft of Intellectual Property and Poaching of Competitor’s Customers
- Lack of Corporate Governance