Directors and Officers liability insurance protects past, present and future directors and officers.
For-profit and nonprofit companies alike need protection from damages resulting from alleged or actual wrongful acts that Directors and/or Officers may have committed in their positions. This policy provides protection in the event of any actual or alleged error, misstatement, omission, misleading statement, or breach of duty. Some policies extend the same coverage to employees. Directors and officers liability insurance is necessary when a board of directors is assembled. Investors usually require you to have directors and officers liability insurance as part of the conditions for funding your company.