Directors' and officers' liability insurance protects directors and officers from liability for the actions they take on behalf of the corporation.

Question

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Directors' and officers' liability insurance is designed to protect directors and officers from liability for the actions they take on behalf of the corporation. This type of insurance provides coverage in the event that a director or officer is sued for alleged wrongful acts, such as breaches of fiduciary duty or negligence, that result in financial losses for shareholders or other stakeholders. Without this insurance, directors and officers risk personal financial exposure and potential legal action.

Directors' and Officers' Liability Insurance Protects Directors and Officers from Liability