Directors & Officers Liability Insurance

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Directors & Officers Liability Insurance

As a company director or officer, a person makes many decisions on behalf of the company. While doing so they are personally exposed to unlimited financial and legal liabilities. Making decisions may make directors and officers vulnerable to allegations of mismanagement or wrongful acts committed in the course of doing their job.

Directors and officers indemnity insurance protects directors and officers from claims arising from their decisions and actions taken whilst managing their business. These claims may come from a host of third parties – from shareholders, suppliers to customers etc. Having a suitable directors and officers indemnity insurance gives directors and officers some peace of mind to take their decision in the best interest of the company without worrying much about any unnecessary ligations and claims which may be made against them in future.

Directors and officers indemnity policy provides financial assistance to fund the defense costs and compensation claims made against the company directors or senior managers for any alleged mismanagement. In fact, directors and officers indemnity insurance has became a key component of a company’s risk management policy.