This insurance is used to insure against claims for negligent acts, errors or omissions alleged to have been committed by present or former directors or officers of your corporation.
Claims arise from a number of sources, including:
• Dissident stockholders
• Government regulatory agencies
The nature of the claim might involve allegations that the directors or officers have been responsible for such things as:
• Loss of value of a company's stock from poor administration, poor judgment or poor supervision.
• Improper use of corporate funds, such as allowing excessive compensation to officers.
• Using their position for personal gain
• Failure to treat creditors equally and fairly
• Anti-trust violations
• Unwise investment of corporate funds
• Misstatement of the corporation's financial position, or failure to disclose important facts to stockholders.
• Improper payment of dividends
• Exceeding authority granted by the character or by-laws
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