Navigating Director And Officer Liability

Being a director or officer of a company comes with many responsibilities – responsibilities that if not met are increasingly resulting in claims directly against directors and officers. This is true worldwide. In Global Insurance Law Connect 2025 Directors' and Officers' Global Trends report, it highlighted causes such as greater expectations by shareholders and increased legislative and regulatory requirements.

Most frequently, claims against directors and officers are made concerning:

• Stakeholder litigation;
• Regulatory breaches; and
• Bankruptcy claims.

Stakeholder Litigation

Stakeholders most often allege directors and officers breached their fiduciary duties through mismanagement, oppressive conduct, fraudulent schemes, or misused corporate assets. Directors and officers owe fiduciary duty to the company because they wield significant power with limited oversight. As such, they must act honestly and in good faith with a view to the best interest