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I was asked many times what is Directors’ and Officers’ Liability Insurance. It is also commonly known as “D&O Insurance”. This type of insurance is not very popular in Singapore although there are so many incidents around us today proving that businesses or organisations should have some form of Directors’ and Officers’ Liability Insurance.

Take for instance, the recent news of the management committee of a Town Council getting into civil suits with the authorities. Read it here:

In the above mentioned news, the senior management committee members have to dig into their personal savings to defend their civil suits. The case is not over yet and they are facing financial difficulties to pay their lawyers. To make it simple, D&O Insurance helps you to pay for legal fees/damages due to your management liabilities of your business or organisation.

“My business is small I do not need such insurance.” In fact it is even more crucial to be insured, as a single legal suit will potentially wipe off all your personal assets.

As long as your business or organisation make day to day decisions with third parties like for example, Suppliers, Government Authorities, Customers, Vendors, Joint Venture Partners and even your own employees, it is wise to pick up some form of D&O Insurance to protect your personal assets.