Directors & Officers Insurance

Directors & Officers Insurance

Directors and Officers Insurance policies are not necessary for all types of businesses, but are specifically aimed at the corporate form of businesses.  Generally, directors and officers in corporations are indemnified by the corporation for any losses that they incur as the result of them acting in their official roles for the business.  However, any person with an interest can file a claim against the board of a company or one of its individual members.

Even if these claims lack merit, they can be expensive to defend.  Directors and Officers Insurance Policies are aimed at protecting companies from losses that can occur as a result of these lawsuits.  They are aimed at covering the legal expenses that directors and officers would incur in defending themselves against these lawsuits, as well as paying the judgments or settlements that might occur as a result of these lawsuits. 

One of the most important aspects of Directors and Officers Insurance is that it provides coverage even if the director has engaged in wrongdoing, which prevents a company from experiencing the double-whammy of having a dishonest officer and then being forced to accept the losses that are the result of that officer’s dishonest or unethical behavior.


© 2017 All rights reserved. Capstone Insurance & Financial Services
1386 Route 9 | Toms River, NJ 08755 | (732) 286-9600


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