Why Buy Directors and Officers Liability Insurance?
Directors and Officers (D&O’s) are held responsible for implementing sound corporate policies and procedures and for monitoring management’s implementation of such procedures. This can include day to day decisions such as sound investment management, release of non-public information, conflicts of interest, hiring and firing decisions, corporate policies regarding discrimination, sexual harassment, benefit plans, merger and acquisition activity just to name a few. • Investment Management D&O’s can be held personally responsible for investment decisions of the company’s portfolio of assets. Such negligence can include failure to evaluate properly the credentials of the person responsible, failing to have policies limiting the type and duration of asset purchases, failure to require purchases in excess of certain limits to be approved by the board, etc. Regardless of the reason, D&O’s can be brought into a suit for failure of the company’s portfolio to perform. • Release of Non-Public In
