Hubert U.Masterson,IV is the president of a Buzzer,Inc.,an automobile manufacturer.Hubert is concerned about the possibility of shareholders suing him for his executive decision-making regarding the continued production of large sport-utility vehicles that average ten miles per gallon,at a time when gasoline prices are at record highs.Hubert urges the company to purchase insurance to guard against his potential personal liability to shareholders in the context of his executive decision-making.If the company agrees to purchase insurance for William,what type of policy should it consider?

Question

Quizplus · Accepted Answer

The type of insurance policy that would protect Hubert from potential personal liability for his executive decision-making is directors' and officers' liability insurance. This type of policy provides coverage for claims made against individual directors and officers of a company for alleged wrongful acts related to their role in the company's management. This includes claims by shareholders alleging that the director or officer breached their fiduciary duty or made decisions that harmed the shareholders.

Hubert UMasterson,IV Is the President of a Buzzer,Inc