Smaller companies usually do not carry directors' and officers' liability insurance as it is too expensive.

Question

Quizplus · Accepted Answer

This statement is generally true. Directors' and officers' liability insurance can be very costly, especially for smaller companies with limited financial resources. As a result, many of these companies may choose not to carry this type of insurance, leaving their directors and officers personally exposed to potential lawsuits and financial liabilities. However, there may be exceptions to this rule, and some smaller companies may choose to invest in this insurance as a way to protect their leadership teams and attract top talent.

Smaller Companies Usually Do Not Carry Directors' and Officers' Liability