Director's and Officer's Liability

Directors and officers are quickly joining the ranks of the professional and business owner as targets for liability suits. By taking on the highly visible position of director or officer, you assume great personal risk. You could be held liable for any number of things from abuse of authority and libel to slander and financial mismanagement brought against you by shareholders, creditors, customers or employees -- to name a few.

D&O insurance is designed to help protect both the assets of the company and the personal assets of the individual. D&O insurance covers those liabilities that may result from an individual or group performing their task(s) as directors or officers. Anyone acting as a director or officer for a legal entity is covered under most plans. This includes positions of chairman, deputy chairman, president or vice president of the board of directors, the managing director, general manager, comptroller, secretary or treasurer and any other person who performs the corporate functions similar to those performed by an officer.