Directors and Officers (D&O) coverage protects the directors and officers of corporations and other entities against legal judgments and related expenses resulting from allegations of wrongful acts.

View our Directors and Officers Comparison Chart.

Directors and officers can be held personally liable if their neglect results in a loss to the corporation or its shareholders. Claims can come from many places, including:

  • Shareholders
  • Employees
  • Competitors
  • Customers

To protect from this, Directors and Officers insurance is split into two parts:

  • Direct coverage to the directors and officers (only utilized when the corporate entity is not permitted to reimburse him/her/them)
  • Corporate reimbursement

D&O coverage does not provide protection to the directors and officers of a professional organization for professional liability claims. An organization should buy a separate Professional Liability (malpractice) policy.

When suits arise where there was no property damage, bodily injury, personal injury nor advertising injury (all areas where the Commercial General Liability policy typically provides coverage), D&O coverage is the only insurance that stands between plaintiffs and directors’ assets. The sheer volume of suits against directors and officers has further fueled the need for this coverage.