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Directors and Officers Liability Insurance (D&O insurance) is a type of insurance policy that provides financial protection to directors and officers of a company in the event that they are sued for alleged wrongful acts committed in the course of their duties.
D&O insurance policies typically cover defence costs and damages that may arise from claims related to alleged breaches of fiduciary duty, negligence, errors and omissions, and other wrongful acts committed by directors and officers. These policies can also provide coverage for claims arising from shareholder lawsuits, regulatory investigations, and other types of legal action.
D&O insurance is important because directors and officers can be held personally liable for their actions or inactions while serving in their positions. This can result in significant financial losses for the individuals as well as for the company as a whole. D&O insurance can help mitigate these risks and provide a layer of protection for directors and officers.
It’s important for companies and individuals to carefully evaluate their risks and needs and work with an experienced insurance broker to obtain the appropriate coverage. That’s where Sonic can help, Sonic’s brokers can help you find the best coverage at the best price.
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