Even decisions made with the best of intentions are subject to scrutiny. Legal actions and investigations that allege director misconduct cannot be ignored and defending them, to prove innocence, can be extremely time consuming and costly. Without insurance protection a company is left to fund a director’s defence from its own resources. If the company is unable to do this then the director is left to pick up the cost from personal resources. Directors Liability Insurance is a legal defence insurance policy that provides the financial assistance to fund the defence of directors and some managers. It also meets the costs of awards and damages made against a director, including out of court settlements. The policy can also provide some cover for the company itself, should it be named in certain types of litigation or investigation.