What does Business Judgment Rule mean? Read on to discover the definition & meaning of the term Business Judgment Rule - to help you better understand the language used in insurance policies.
Business Judgment Rule
A common law liability doctrine sometimes used to absolve the directors and officers of a corporation from liability, provided it can be shown that a loss resulted from a seemingly prudent, good faith business decision that simply turned out to be incorrect, rather than a grossly negligent or fraudulent act.
We hope the you have a better understanding of the meaning of Business Judgment Rule.