Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,589,200,277 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Directors' and Officers' Liability Insurance

   Also found in: Encyclopedia, Wikipedia 0.01 sec.
Directors' and Officers' Liability Insurance
Insurance a publicly-traded company purchases to reimburse senior management, or the company itself, for damages and legal expenses incurred as the result of a lawsuit for negligence. For example, if the board of directors' actions led to a massive loss for the company resulting in a lawsuit, directors' and officers' liability insurance will cover the cost of the lawsuit for the company as a whole and the individual directors. It is important to note that directors' and officers' liability insurance does not cover intentionally wrong actions, only negligence. It is often called D&O insurance for short.

directors' and officers' liability insurance
A type of insurance taken to protect a firm's directors and officers against lawsuitsmainly suits instituted by unhappy shareholders of the firm. Directors' and officers' liability insurance has become more expensive and more difficult to obtain in recent years as the number of lawsuits has increased dramatically. Companies find it very difficult to recruit outside directors unless the candidates are supplied with liability insurance. Also called D&O Coverage.


How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
A new service for corporate clients purchasing locally admitted directors' and officers' liability insurance to cover their international operations and subsidiaries is now available from American International Group Inc.
The first, Navigating the D&O Maze: A Handbook for Purchasers of Directors' and Officers' Liability Insurance, was published in 1997.
[TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] (1) These amounts represent professional fees that are not expected to be reimbursed under our directors' and officers' liability insurance policy.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.