D & O insurance policies offer liability cover for company managers to protect them from claims which may arise from the decisions and actions taken within the scope of their regular duties.
D & O policies cover the personal liability of company directors and officers as individuals but also the reimbursement of the insured company in case it has paid the claim of a third party on behalf of its managers in order to protect them.
Directors and officers have specific duties, responsibilities and powers relating to their position. If a director or officer is found to have acted outside of their remit, civil, criminal or regulatory proceedings can be brought against them
Some examples of alleged wrongful acts are:
- Breach of trust
- Breach of duty
- Misleading statements
- Wrongful trading
D & O insurance operates on a claims made basis or within a contractually extended reporting period. A policy can also have an often unlimited retroactive period.