As a director, you're automatically exposed to unlimited personal liability. In short, you have to pay.
You don’t always have to rely on deep pockets and a good solicitor when things go wrong. A comprehensive Directors and Officers (D&O) insurance policy will do just as well.
D&O liability may arise in the following forms:
Depending on the policy, a D&O policy can pay legal fees, damages, agreed upon settlements, some civil penalties and investigative costs.