UNDERSTANDING DIRECTORS AND OFFICERS INSURANCE
Understanding the Basics of Coverage
This paper examines professional liability insurance known as Directors & Officers Liability Insurance. This type of insurance coverage responds to liability exposures many types of businesses face, including businesses that do not provide professional services to others. Directors and officers could be held liable if a cybersecurity breach were to occur.
Directors and officers liability insurance, provides the following types of coverage:
- Protects against liability allegations arising out of their “wrongful acts”
- Reimburses the corporation when it is legally required or permitted