The D&O (Directors and Officers Liability Insurance) policy protects the company's directors from claims related to their mistakes in performing their duties. The reimbursement of expenses with relation to defense costs, including lawyers, experts, and court costs is a key element of this cover.
This insurance provides an advance partial payment of claim thus allowing to protect directors' interests from the first days of incurring costs.
The amount of the claim is paid based upon the result of court ruling or out-of-court settlement. The policy may cover any employees performing managerial functions.
D&O also protects the company from securities-related lawsuits and, through POSI extension, covers risks associated with IPO, including careless statements and incorrect information during the roadshow campaigns.
