Specialty Insurance Coverages to Meet Evolving Needs
Directors and officers (D&O) liability insurance helps cover the personal assets of a company’s directors and officers. It provides protection if these individuals are personally sued by employees, vendors, competitors, investors, customers or other parties for actual or alleged wrongful acts in management. This specialized insurance covers legal fees, settlements and other costs. However, it does not generally provide coverage against illegal acts or illegal profits.
Directors and officers can be sued for a variety of reasons related to their company roles, including:
- Breach of fiduciary duty, resulting in financial losses or bankruptcy
- Misrepresentation of company assets
- Misuse of company funds
- Fraud
- Failure to comply with workplace laws
- Theft of intellectual property and poaching of competitors’ customers
- Lack of corporate governance
