In light of the debacle that has rewarded insiders

In light of the debacle that has rewarded insiders handsomely at the expense of numerous common shareholders, it should perhaps be pointed out that Directors and Officers of public companies are not immune from being held personally liable. For that reason, D&O insurance, once the exception, is now becoming the rule among many corporations. However, these policies do not protect the insured against acts of fraud. In that case, the fraudster must self-insure.

"Liability can exist for officers and directors when they cause financial harm to the corporation, act solely on their own behalf and to the detriment of the corporation, or commit a crime or wrongful act. Certain acts may subject an officer or director to personal liability, and other acts--although they would otherwise subject them to liability--may be either indemnified by the corporation or insured against by the corporation."