The basic level of cover provided operates in two parts:
Once a claim has been made, and legals fees or compensation are known, the insurer will indemnify (reimburse) any director, officer or employee for their liability for any wrongful act.
Secondly, the insurer will indemnify the company itself where it has reimbursed a director, officer or employee for such liability.
The policy must be taken out by a company on behalf of the individual.