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Directors and Officers (D&O)

Directors and Officers have a duty to exercise due diligence in overseeing the management of the organization that they serve – whether that be for profit or not-for-profit. Directors and Officers are required to act in good faith; in the best interest of the organization; place the interest of the organization before their own interests; and required to act within the scope of the applicable bylaws.  If they fail to full fill these basic duties, the Directors and Officers may be held personally liable – and indemnity from the corporation may not be enough.  Legal action can also be brought for alleged wrongful acts in their capacity as directors and officers.

Directors and Officers liability has become closely associated with broader management liability insurance, which covers liabilities of the corporation itself as well as the personal liabilities for the directors and officers of the corporation.

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