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Does d&o cover several businesses with same directors?

QuestionsCategory: Directors & Officers Liability InsuranceDoes d&o cover several businesses with same directors?
default avatarPlan Cover Staff asked 3 years ago
1 Answers

Best Answer

default avatarSrinivasan Mahadevan answered 3 years ago
Yes. Let us explore more on how this is possible.
The D&O Liability insurance policy is actually purchased by the company to cover the directors of the company. The directors covered under the policy include both executive, and non-executive directors. Since, one individual person can take up positions as a director of the company with multiple companies, the same individual person (director) can be covered under several businesses having a D&O policy. 
Directors are liable personally to pay losses suffered by the company following an act which is wrong, negligent, outside the Companys authority.  It is, therefore, imperative for the directors/officers of a company to be aware of such risks and exposures and to protect the interests of the company in the best way possible.