This insurance (also known as D&O Insurance) indemnifies directors and officers of an investment advisory firm if they are sued by stockholders, employees, clients and others in conjunction with the performance of their duties. Coverage extends to claims arising out of alleged errors in judgment, breaches of duty, and wrongful acts related to their organizational activities.
- Since a director can be held personally responsible in some cases, most directors and officers will demand that their organization maintain D & O Insurance to protect their personal assets.
- Directors & Officers Liability Insurance is sometimes confused with ERRORS & OMISSIONS LIABILITY INSURANCE but the two are not synonymous. ERRORS & OMISSIONS addresses actual or alleged negligent acts, errors or omissions with respect to professional services; Directors & Officers addresses the execution of business managerial duties.
- Directors & Officers Insurance may include limited coverage for EMPLOYMENT PRACTICES LIABILITY INSURANCE.
Click here to download a Directors & Officers Liability Insurance Application.