Conceptual Framework of Liability Insurance
Directors' and officers' liability programs, like professional liability insurance generally, rest in Georgia on the Law of Georgia on Insurance. Under the law, the object of insurance may be any property-related or personal non-property interest that does not contradict Georgian legislation. Within this framework, liability insurance is of particular importance — insurance connected with damage caused by the insured person to a third (natural or legal) person or to that person's property. It is precisely this category that covers programs allocating the liability risks of governing persons and professionals.
It is worth noting that the law does not give these products a separate statutory name: directors' and officers' liability insurance belongs to the voluntary non-life class, and its detailed content is shaped by civil-law design — the conditions of the contract. When building a program, the precision of the contractual formulations is therefore decisive.