Directors and Officers (D&O) liability insurance is coverage that protects individuals from personal 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. D&O liability insurance is to protect directors and officers in their duties to corporate governance, corporate law, and the fiduciary duty owed to stakeholders. These policies can take different forms, depending on the nature of the organization and the risks it faces.
D&O liability insurance claims are paid to the directors and officers as a reimbursemenet for the losses incurred in defense if legal action is brought upon them. This coverage can extend to criminal and regulatory investigations or trail defense costs since civil and criminal actions are typically brought to D&O simultaneously.