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Directors and
Officers Liability:
Individuals who serve as directors or officers of organizations,
whether for profit or not-for-profit, have a fiduciary
responsibility to manage the affairs of the organization. If the
absence or alleged absence of such care causes a financial loss for
the organization, its shareholders or even its creditors, customers
or competitors, the directors and officers can be held personally
responsible. D&O insurance can provide coverage for the company,
its directors, its managers and officers as well as its employees
for suits alleging that they were not prudent in their decision
making. Often of equal importance, D&O policies typically provide
defense cost coverage when these allegations are made. Defense
costs alone can be reason enough to purchase a D&O policy.
Almost any day-to-day decision or action by anyone in the
organization can trigger a lawsuit. The most frequent causes of
action leading to D&O suits are:
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