If you have ever had an opportunity of attending any leadership summit or workshop, among the key things that your speaker must have said or forgotten to say is about taking responsibility as one of the qualities of good governance. They should also have talked about something to do with the challenges that leaders go through, some of which are inevitable. In short, the life of a corporate director or officer, as leaders, is not as simple as you might think. These individuals need to organize the entire team below them to perform and make sure they are motivated to deliver. 

The work of directors and officers is rewarding but equally challenging. One of the challenges directors and officers face, which is not rare, is allegations and legal claims levelled against them by parties who have an interest in the businesses or corporates they serve. These can be employees, customers, partners, suppliers, competitors, etc. So what happens in the case of an employee suing their manager for what they term unlawful dismissal? What if the accuser (the employee) wins the legal battle? Here, the manager, the company, or both can be penalized or punished in accordance with the law. But such claims can really mean to be expensive and scary. Some rulings have required managers or companies to pay their accusers up to billions of dollars. Very appalling, right? 

Directors and officers (D&O) liability insurance is the only resort for companies, directors, and officers to help them manoeuvre the tricky corporate world. Directors and officers liability insurance is a cover that protects directors and officers from incurring personal losses from legal claims raised against them in their service capacities. Directors and officers liability insurance, by extension, covers the affected company by sorting out any costs such as legal charges arising from the case. Directors and officers are at risk of accusations such as corruption, fraudulent activities, misappropriation of company resources, and failure to observe company laws and policies. 

Directors and officers liability insurance is crucial because some legal suits might come with unbearable financial consequences and losses to the directors and officers and the companies they work for. Because a claim can come up at any second, it is always considered good practice for any company, director or officer to be covered by a directors and officers liability insurance.