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Directors & Officers Insurance is essential for covering claims that result from managerial decisions that had adverse outcomes. Protect your company today!

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The Basics

Directors and Officers Insurance is liability insurance that is payable to the directors and officers of a company, or the organization itself, for losses or defense costs. It covers you for claims made against members or officers that are part of a board of directors.

Generally, there are several areas in which D&O Insurance will most likely be applied:

  • For-profit organizations
  • Private firms
  • Not-for-profit organizations
  • Educational institutions


Directors and officers are also exposed to possible legal actions:

  • By creditors
  • Involving civl actions by competitors
  • Allegations of violations of regulatory statue
  • By the government in alleged price fixing and securities disclosure suits
  • Shareholder actions involving takeovers, mergers and acquisitions.

Special Features of D & O Policies

There are several distinct features of Directors and Officers Insurance Policies:

  • Generally, they are written purely on a claims-made basis
  • They will cover monetary damages, but they do exclude bodily/property injuries
  • In regards to “for-profit” organizations, there is usually no explicit duty to defend the insureds


Often, directors and officers insurance is confused with errors and omissions liability insurance (E & O). Remember, E & O coverage is concerned with performance failures and negligence of employees or company, whereas D & O coverage is concerned with the performance of management! Generally, it is a good idea to carry both types of coverage.