Directors and officers (D&0) liability insurance is insurance coverage intended to protect individuals from personal losses if they are sued as a result of serving as a director or an officer of a business or other type of organization.
It can also cover the legal fees and other costs the organization may incur as a result of such a suit.
When Do You Need Directors & Officers Insurance?
Anyone who serves as a director or an officer of a for-profit business or nonprofit organization may be at risk of a personal claim as a result of that position. A directors and officers liability policy insures them against personal losses.
It can also help reimburse the business or nonprofit for the legal fees or other costs it may incur in defending those individuals against a lawsuit.
D&O policies can take different forms, depending on the nature of the organization and the risks it faces, so it’s best to seek out an insurance company with deep experience in this specialized field.
The policies are generally purchased by the organization to cover a group of individuals rather than by the individuals themselves.
Policies can be written to insure against a variety of hazards, but they generally make exclusions for fraud or other criminal activity.
DISCLAIMER: Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Read your policy or consult with your agent for details. Your eligibility for particular products and services is subject to final underwriting and acceptance by the insurance company providing such products or services.
This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Be sure to read the policy, including all endorsements, or prospectus, if applicable.