For corporate directors and officers in the event they are sued in conjunction with the performance of their duties as they relate to a company. In essence and at their core, a D&O policy remains a safeguard of the interests of officers and directors’ interests and not a vehicle for corporate protection.
Meanwhile, errors and omissions (E&O) policies form the equivalent to malpractice insurance for occupations other than those in the legal and medical fields. Such policies are designed to insure members of a particular professional group from liability arising out of special risks such as negligence, omissions, mistakes and errors inherent in the practice of their profession.
If a claim is made against you and/or your business due to alleged misconduct, then your E&O insurance company or your D&O insurance company may possess a duty to defend and/or indemnify you or your business. It is important to understand that in Florida a liability insurer’s duty to defend is controlled by the allegations in the complaint against the insured, even if the allegations are factually incorrect or without merit. Further, an insurer’s duty to indemnify is narrower than the duty to defend and thus cannot exist if there is no duty to defend.
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