Even the best company directors and officers are well versed with the oversights that can happen when running a business. However, no matter how prepared, as one of these individuals you could be held personally responsible for the consequences of your mistake.
Even if the claim is not valid, and you as a director or officer ultimately win the lawsuit; defending the claim will be a financial strain. This means that your personal assets – such as your house, car or bank account – could be at risk.
It’s much safer to have the proper assurance should something untoward occur that will negatively impact your personal finances as well as that of your business. This is where Director's & Officer's Liability Insurance is applicable as it has been specially developed to indemnify directors and officers against claims that they are legally liable for as a result of an innocent act or error in judgement.