Coppertop173you say:"......Negligence would not really be...

Coppertop173

you say:

"......Negligence would not really be covered by directors insurance as it is not covered under many indemnity type policies. But I could stand corrected in this."

Negligence IS typically covered - that is the whole point of getting the insurance.

negligence (sometimes referred to as "breach of duty") is the "meat and potatoes" type of liablity that is meant to be covered, along with a bunch of other "wrongful acts":
http://www.answers.com/topic/directors-and-officers-liability-insurance?cat=biz-fin