2006-06-08 03:53:39 · 2 answers · asked by websrider 1 in Business & Finance ➔ Insurance
"D&O offers individual directors and officers the protection they need from personal liability and financial loss arising out of wrongful acts committed or allegedly committed in their capacity as corporate officers and/or directors by transferring this risk to the insurance market. D&O covers have gradually broadened over the years, but a combination of rising claims numbers, a doubling of average settlement cost per claim, and increased shareholder activism has radically changed that market. Not only are premiums increasing, but layers of cover are being stripped away, leaving many directors unknowingly exposed to greater personal risk than ever before."
2006-06-08 17:10:17 · answer #1 · answered by Sandtone 3 · 0⤊ 0⤋
This is to protect a firm when its senior officers or Directors screw up.
2006-06-08 15:36:37 · answer #2 · answered by Bob F 1 · 0⤊ 0⤋