D&O insurance is provides indemnity for the complex legal liabilities that may be encountered by Company directors and for employees who may be deemed to be a director.
To add to the complexity, most insurers divide the insurance policy is divided into two parts:
The first part covers the Insured Persons (the directors) for their legal liability arising from Wrongful Acts in the course of their duties as a director.
The second part covers the Insured Organisation (the Company) for its liability, if any, to indemnify the Insured Person for costs and damages arising from a Wrongful Act.
To all intents and purposes the insurance is to indemnify for the Wrongful Acts of directors. The only insurance protection for the Company, per se, is for it...