According to court document filing by e.DIGITAL  in  June 7, 2017 they paid $ 29,775,38 for getting D&O insurance just couple of days before filing for chapter 7. This amount has appoximate coverage of 15-18  million dolars. In addition each of board of directors has their own individual insurance in this regard . 2 Board members of e.DIGITAL has approximate 15-20 Million dollars estimate individual insurance.

DIRECTORS & OFFICERS LIABILITY INSURANCE

Company directors and officers have a moral and legal obligation to do what they feel is in the best interest of the company. Unfortunately, lawsuits and damage claims have risen tremendously in recent years. Some of these suits are aimed directly at the corporate officers or directors while others aim at the company itself.

Directors and officers insurance also known as D&O, is financial protection against management specific claims. It is similar to Errors and Omissions insurance (E&O), but covers executive and corporate performance instead of professional service performance.

Directors and Officers insurance protects corporate executives when mis-management claims are made against them from stockholders, employees, and outside parties.

Examples: A company director or officer could have the following types of suits levied against them:

• Stockholders may sue the company and its executives for poor financial performance.

• Stockholders may sue for dishonesty or fraud.

• Stockholders may sue because the company is being taken over by a competitor.

• The SEC may sue the company for potential financial fraud or mistakes on the company's disclosure and earnings statements.