Directors and Officers liability insurance is designed to provide protection for the directors and officers of a company if they are sued for actions taken during the performance of their duties to the company. This type of insurance is similar to Errors and Omissions insurance, but the key difference is that E&O insurance covers failure and negligence as they relate to products and services, not to the performance of managerial duties. It is often advisable for businesses to carry both types of insurance. Generally speaking, claims made by stockholders, employees, and clients will be made against the company itself as well as the directors of the company. This being the case, it is important that Directors and Officers insurance be in place, in order to protect the personal assets of the company’s executives. Typically, allegations levied against directors and officers have to do with acts, decisions, errors, or omissions which have lowered the value of a company’s stock or somehow weakened the company’s position in its industry. In today’s business climate, Directors and Officers insurance is an absolute necessity for many companies. Contact the experts at Carlisle Insurance to be sure that you and your business are properly protected with Directors and Officers Insurance.