directors' and officers' liability insurance

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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 lawsuits—mainly 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.
References in periodicals archive ?
DDD offers a career path to our people on the day when they join us.
In conclusion, we report a case of generalized DDD with autosomal dominant penetrance for its rarity, as very few cases have been reported from India.
DDD Security Systems, established in 1968 and with a turnover of pounds 1.
If clients report problems, DDD will be able to locate any faults and carry out minor modifications on-line.
During the arrested landing deceleration, the handheld GPS became dislodged from its holder on the DDD handle and struck and displaced the pilot's ejection seat firing mechanism.
The main risk of using Gantt charts to calculate the DDD period is that the results have no scientific credibility.
DDD is either a revolutionary new system which does away with the need for ISPs .
The Cornell study focused on soils contaminated with DDT and its derivatives DDE and DDD.
In cooperation with the city government and with direct support of its newly elected Mayor Marc Morial, the DDD makes all of its development and downtown maintenance decisions around two publicly noted expectations: that downtown be safe and clean.