Directors and Officers Insurance
Directors & Officers Insurance also known as simply D&O Insurance protects a business's officers and directors against personal liability for any alleged act or wrongdoing within their role within the business.
Legislation in many countries make directors and senior officers personally responsible for wrongful acts they commit as representatives of the company. If poor management decisions are made and the company loses business, if investors are given inaccurate information or if an employee believes he has been unfairly dismissed, personal action may be taken and the company may be prohibited from paying costs or damages on the directors behalf. Extremely large personal claims have been seen in the USA and they are becoming more frequent in Australasia.