Insures corporate
directors and officers against claims, most often by stockholders
and employees, alleging financial loss arising from mismanagement.
The policies contain two coverages as follows:
- The first reimburses the insured organization when it is legally
obligated to indemnify corporate directors and officers for
their acts
- The second provides direct coverage to directors and officers
when the organization is not legally obligated to indemnify
them.
D&O forms are written on a claims-made basis and typically exclude
intentional/dishonest acts and bodily injury and property damage.
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