DIRECTORS AND OFFICERS LIABILITY COVERAGE insures corporate directors and officers against claims that are usually brought by stockholders and that allege loss of value because of mismanagement by the officers and directors. More individuals owning stock and more stringent standards imposed by the courts indicate a growing risk. An outside directorship liability endorsement is available as supplementary protection to assure sufficient limits for the exposure created when a company's director, officer or employee serves in an outside director position at the company's request.
(Use ACORD Form #807)
Related PF&M Article: Directors and Officers Liability Insurance Overview