Title: Directors and Officers Insurance
Author: Chris Langille
Published: March 9, 2016
Last modified: October 26, 2022

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#  Directors and Officers Insurance

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.

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.

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