Directors and Officers Insurance

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Home Startup Terms Glossary Directors and Officers Insurance

What is Directors and Officers Insurance?

Directors and officers insurance is a policy protecting a board of directors and executive officers if they get sued for negligent or tortious acts when managing a startup. It protects them against claims resulting from employees, competitors, and other third parties. This insurance type will pay for attorneys’ fees, court costs, and damages.

Directors and Officers Insurance Law Examples

Examples of covered events that directors and officers insurance will pay includes:

  • Example 1. Breach of contract
  • Example 2. Misappropriation of company funds
  • Example 3. Fraudulent activity
  • Example 4. Negligent corporate governance
  • Example 5. Intellectual property theft

Learn about directors and officers insurance on this page .

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Nichelle W. on ContractsCounsel
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Nichelle W.

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Ocala, Florida
5 Yrs Experience
Licensed in FL
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