In today’s dynamic and ever changing business environment, boards and directors & officers of a company have an increased responsibility of care towards the firm & employees and can be sued, which can put their personal assets at stake.

Directors and officers can be held legally responsible for their own actions, inactions – and the actions of their co-directors. A company Directors’ personal liability for the performance of a company is unlimited and the shareholders can easily sue the directors & officers for mismanagement.

When you are sued in your personal capacity, D&O insurance pays for defense costs, and any damages or settlements offered by the court. D&O policies provide the following:

• Entity cover for employment practices liability claims
• Regulatory investigations
• Entity cover for securities claims
• Retired directors
• Crisis management

Key areas of claims under D&O and EPL noted over the years are initial public offerings, outside directorship, wrongful termination, sexual harassment, or discrimination.