Wrongful Act

Updated: 09 June 2023

What Does Wrongful Act Mean?

A wrongful act refers to any error or breach of conduct covered under professional liability insurance, which provides the officers and directors of an insured company financial protection from the liability arising from alleged erroneous acts. Aside from errors and breach of conduct, wrongful acts include breach of duty, neglect, misstatement, omission, or anything for which a claim is filed against them or the company. Wrongful acts do not include theft, libel, slander and dishonesty.

Insuranceopedia Explains Wrongful Act

An example of a professional liability policy that covers wrongful acts is director and officers (D&O) insurance policy. D&O insurance policies seek to protect an insured company and its officers from the financial implications of legal actions against the company or its directors and officers for wrongful acts they purportedly commit in such official capacities. These policies cover legal expenses.

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