D&O Liability Insurance Quiz

Directors and Officers Liability Insurance (D&O)

• Provides coverage for legal defense costs, settlements, and judgments arising from wrongful acts in the capacity of a director or officer.
• Covers claims related to breaches of fiduciary duties, misstatements, and omissions.
• Protects against employment practices claims, regulatory investigations, and shareholder derivative actions.

Beneficiaries of D&O Coverage

• Payment can be received by the organization itself, directors, and officers named as defendants in lawsuits.
• Coverage may extend to employees of the organization in some policies.

Exclusions from D&O Policies

• Personal misconduct or fraud is typically not covered under D&O insurance.
• Claims related to bodily injury, property damage, and certain criminal acts are also generally excluded.

Broader Management Liability Insurance

• Adds coverage for other liabilities not included in D&O, like employment practices liability and cyber liability.
• Protects against potential lawsuits from employees and other stakeholders.

Triggers for D&O Coverage

• Coverage is typically triggered by claims or lawsuits initiated by shareholders, employees, or other parties.
• Changes in regulations or laws affecting the company's operations may also invoke coverage.

Test your knowledge on Directors and Officers Liability Insurance (D&O) with this quiz. Explore key concepts, coverage details, and legal considerations surrounding this type of insurance. Challenge yourself and see how well you understand the ins and outs of D&O liability insurance.