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Can a company insure only directors and officers?

QuestionsCategory: Directors & Officers Liability InsuranceCan a company insure only directors and officers?
default avatarPlan Cover Staff asked 2 years ago
1 Answers

Best Answer

default avatarSrinivasan Mahadevan answered 2 years ago
D&O liability insurance policies provides cover for directors, officers and managers to protect them from claims which may arise from the decisions taken within the scope of their regular duties. Businesses purchase D&O cover because managers can make mistakes. 

D&O coverage is usually for current, future and past directors and officers of a company. The directors of the subsidiary of the parent company can also be included in the policy being purchased by the parent company. The condition need to be that the subsidiary has to be a wholly owned entity of the parent company. 

In addition to past, present and future directors, the D&O liability insurance also covers non-executive directors and employees in a managerial or supervisory capacity.