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Personal Director's Liability Insurance

Personal Director's Question:"Is It Worth the Risk?"

For years, directors have taken comfort in the protection afforded them by a traditional directors and officers (D&O) liability insurance policy. But in today's world, independent directors are wondering, "Is that sufficient?" The unprecedented number of corporate scandals, financial restatements, and bankruptcies has led to the most litigious D&O liability environment in history. In many cases, the financial losses suffered by shareholders and other constituents far exceed the limits of any D&O liability insurance program. Shareholders who believe they have been wronged are looking for their own form of justice…going after the personal assets of allegedly negligent or deceitful executives and board members.

With evolving legislation and stricter corporate governance standards, directors face greater personal liability than ever before. The time has come for directors to take steps to protect themselves, with coverage designed to protect their personal assets.


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