Panel: Allan Grafman, Kevin LaCroix , and Neil Posner
Both indemnification and Directors’ & Officers’ (D&O) liability insurance are important tools for protecting directors and officers from personal liability for actions taken in their professional capacity. However, they serve different purposes and provide different types of protection.
The right to be indemnified by the company is typically found in a company’s bylaws or corporate charter. The purpose of these provisions is to cover the costs associated with legal action taken against its directors and officers and, accordingly, help to protect directors and officers by shifting the financial burden of legal defense and settlements to the company they serve.
D&O insurance, on the other hand, is a type of insurance policy that provides coverage for directors and officers to cover the costs of settlements and damages and can provide financial protection in situations where the company’s ability to provide indemnification is not available or sufficient.
Before agreeing to serve (or continue serving) as an officer or as a board director, such an individual should understand what indemnification rights exist and what D&O insurance the company has. And to do this, the individual must have some understanding of the landscape of the specialized world of indemnification and D&O insurance.
During this webinar, we will explore the various types of indemnification provisions that may be available to corporate directors and officers, including full indemnification, limited indemnification, and advancement of expenses. We discuss the factors that may affect a company’s ability to indemnify its directors and officers, such as bankruptcy or the company’s financial health. We will also delve into typical D&O provisions and explore common scenarios in which D&O insurance can provide valuable protection.
Attendees will walk away with a better understanding of all these issues, so they will be able to better understand and negotiate appropriate protections for themselves.
As with each episode in this series, the information presented in this webinar will be equally helpful and accessible to company owners, executives, board members, and prospective board members.
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