The purpose of a D&O liability insurance policy is to provide coverage for damages, judgments, costs and defense of legal actions, claims or proceedings. The coverage provides the following protection:
Protection of personal assets, as well as spouse’s,
Defense regardless of whether or not allegations are true
Resources for defending the claim
Reduction in reliance on the society
Bylaws contain indemnification provisions to protect the Directors and Officers. Despite these provisions, circumstances could exist where indemnification may not occur (the society is financially impaired, becomes insolvent or is not capable of providing funds for defense or resulting damages).