Why get directors and officers insurance?
The title of director or partner brings a great deal of responsibility. A responsibility to a number of different people, including members of the public,
employees, regulators and investors. Along with those responsibilities, it also potentially exposes that person to certain liabilities for any actions
they may take while working for the company. This means that claims could be made against them which could result in fines, compensation payouts, or
even serving prison time.
What directors and officers insurance provides is financial protection from any of these kinds of claims, ensuring that neither the individual nor the
company itself is liable to deal with these costs.