This type of insurance cover protects these individuals against losses, which include financial sums that they are personally liable to pay, such as damages and legal costs incurred in the defence or settlement of claims. These losses can be very costly to an individual or even a company and so this is why it is a good idea to have D&O cover in place. D&O cover is usually written on a claims made basis, which means that cover is triggered when the third party makes a claim against a policyholder during the policy period.
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