Whether your organization is publicly traded, private, or non-profit, your directors and officers are exposed to a number of liabilities. In the performance of their ongoing organizational duties, they can be held personally liable for both damages and defense costs.
Directors and Officers insurance (D&O) provides financial protection for the directors and officers of your organization in the event they are sued against their actions that affect the profitability or operations of the company. This type of insurance can cover costs or damages lost as a result of a lawsuit. Claims can arise from a variety of sources – government, competitors, creditors, employees, as well as other stakeholders. In some cases, damages awarded are relatively minor. However, the cost of defending these types of claims can be significant, and could very well impact the financial viability of your organization.