The Directors & Officers Liability (D&O) insurance product provides coverage to officers and board members for damages (settlements or awards) and defense costs that arise from lawsuits alleging various wrongful acts, including:
Actual or alleged management errors or omissions
Any misrepresentation, misleading statement or misleading action
Neglect or breach of duties by the individual directors and officers
Board members are obligated to act in good faith and in the best interests of the company. They can be held personally and individually responsible for their action, or lack of action, in managing a company. They are vulnerable to lawsuits based on a number of grounds, including (but not limited to) the following:
