Which of the following statements concerning directors and officers liability insurance (D&O)is true?
I.D&O policies usually cover the personal liability of directors and officers.
II.D&O policies exclude coverage for claims brought by employees and by stockholders.

Question

Quizplus · Accepted Answer

Statement I is true. Directors and officers liability insurance policies usually provide coverage for the personal liability of directors and officers for claims arising from their actions or decisions made while acting in their capacity as directors or officers.

Statement II is false. While there may be certain exclusions or limitations to coverage, D&O policies often provide coverage for claims brought by employees or stockholders.

Which of the Following Statements Concerning Directors and Officers Liability