Definition: Insurance is a financial protection scheme that provides coverage for losses or damage caused by events such as fire, theft, natural disasters, accidents, etc. Directors and officers are employees who have been appointed to represent the company in its affairs. In the context of insurance, "director & officer" refers to the person(s) who are responsible for managing the affairs of the company, whether this is through board meetings or other official roles. The term "insurance policy" may also refer to a legal document that outlines the rights and liabilities of directors and officers in relation to the company's assets and liabilities. The specific coverage available under a director & officer insurance policy depends on the type of coverage being offered and the nature of the relationship between the director(s) and the company. Some types of coverage may include: 1. Financial loss protection: This covers losses that can be caused by natural disasters or other events. 2. Workers' compensation coverage: This covers injuries sustained while performing the duties of a director, officer, or employee. 3. Directors' liability insurance: This covers liabilities resulting from actions taken as a director or officer and may also include policies for directors and officers who are also employees of the company. 4. Professional indemnity insurance: This is used to provide coverage in case a director or officer is sued due to their professional work, even if they do not commit fraud. It's important to note that directors and officers who have a significant interest in an organization may choose to purchase additional insurance policies or be covered by the company itself. In either case, it's essential to understand the specific coverage and its terms to ensure appropriate protection for your interests.

director & officer insurance