Executives of a Fortune 500 firm blocked an acquisition attempt by a larger company.When the stockholders learned they could have made large profits had the acquisition not been blocked,they filed a lawsuit against the executives of the firm.What type of liability insurance protects the executives of the organization against such suits?

Question

Quizplus · Accepted Answer

Directors and officers (D&O) liability insurance provides coverage for executives and directors against lawsuits brought against them related to their role in the company, such as blocking an acquisition. This type of insurance protects the personal assets of the executives and directors, and can also cover legal fees and settlements. Option A, dram shop liability insurance, is a type of insurance that covers businesses that sell alcohol for damages caused by intoxicated patrons. Option C, employers liability insurance, covers claims brought by employees for workplace injuries or illnesses that are not covered by workers' compensation insurance. Option D, employment-related practices liability insurance, covers claims brought by employees related to discrimination, harassment, or wrongful termination.

Executives of a Fortune 500 Firm Blocked an Acquisition Attempt