What is Directors & Officers Liability?

Directors & Officers Liability (D&O) is the unlimited personal liability assumed by an individual solely due to their position within the organization. The main responsibilities of a Director or Officer are to represent the interests of the organization’s members in a prudent manner and to direct the organization's business and affairs according to applicable laws and regulations. In performing their responsibilities, there are basic duties Directors and Officers must adhere to:

• Duty of Diligence
• Duty of Honesty
• Duty of Loyalty
• Duty of Obedience
• Duty of Skill

Who is at risk?

Any organization that has a board of directors has an exposure. This includes, but is not limited to: charity groups, religious organizations, educational institutions, sports clubs, community associations, cultural groups, family-owned businesses, privately-held companies.

Who may claim?

Potential claimants against Directors and Officers include: The Company, Shareholders, Employees, Creditors, Regulatory bodies, Liquidators / Receivers, Members, Contributors, General Public.