D&O — Directors and Officers liability cover

Insurance answering personal claims against directors and commissioners for decisions taken in office: it pays the legal defence and the award, within the policy limit.

Where it appears

president director §18 — the Company maintains D&O cover naming the President Director, continuing for a tail period after departure.

Why it matters

Without it, a claim against a director is paid from the director's own money. The alternative to buying a policy is funding a reserve inside the Company for the same purpose — the money then stays in the structure instead of leaving it as premium.