Company directors have an obligation to make decisions in the best interest of the business and are under immense pressure to meet the expectations of all stakeholders. However, despite having good intentions, mistakes can happen (not just their own mistakes, but also for the failings of people they relied on) and as the company director you are at risk of being held personally liable for allegations of a breach of duty or wrongful acts.
Directors and officers’ liability insurance (often called D&O insurance) is designed to protect directors, officers and employees involved in the management of a company, from personal loss resulting from legal claims made against them while they perform duties on behalf of the company.