What does directors and officers insurance cover?
Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company.
IS directors and officers insurance necessary?
Having A D&O Insurance Plan Is Not Compulsory While a large number of businesses make use of D&O insurance plans, it is not always a necessity. Businesses can avoid getting it if the expense exceeds their needs. Moreover, public businesses are more likely to opt for it, as they have bigger risks to handle.
What is the difference between a director and an officer of an HOA?
The directors are elected by the members of the association to serve for specific terms that are contained in the association's bylaws, and the officers are elected by, and serve at the pleasure of, the board of directors. Thus, the officers can be removed and replaced at any time by action of the board.
What is the difference between professional liability and directors and officers?
D&O covers management decisions. Professional liability covers malpractice in the business you are in.